TORONTO, April 24, 2007 – Gold Eagle Mines Ltd. (TSX: GEA) (“Gold Eagle” or the “Company”) announced today that it has closed its previously announced public offering of 8,900,000 common shares (“Common Shares”) of the Company at a price of CDN$9.00 per Common Share (“the Offering Price”) for gross proceeds of CDN$80,100,000. The Common Shares were sold through a syndicate of underwriters co-led by Orion Securities Inc. and Westwind Partners Inc. and including, BMO Nesbitt Burns Inc., Dundee Securities Corporation and Genuity Capital Markets.
The Company has granted to the underwriters an option, exercisable in whole or in part for a period of 30 days following the closing of the offering, to purchase up to an additional 1,335,000 Common Shares at the Offering Price.
The net proceeds of the offering will be used for the continued exploration of Gold Eagle’s Bruce Channel Discovery, including a work program to sink an exploration shaft to facilitate continued exploration of the mineralized envelope.
The securities offered have not been registered under the U.S. Securities Act of 1933 (the “1933 Act”), as amended and may not be offered or sold in the United States except pursuant to available exemptions from the registration requirements of the 1933 Act and applicable blue-sky laws and as are agreed to by the Company and the underwriters. This release does not constitute an offer for sale of securities in the United States.
About Gold Eagle
Gold Eagle Mines Ltd is a Canadian based junior natural resource company developing a significant new gold discovery in the prolific Red Lake gold camp, located in Northern Ontario, Canada.
Forward-Looking Statement
This News Release contains forward-looking statements regarding the proposed use of proceeds from the offering. Forward-looking statements may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s current expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Gold Eagle’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.goldeaglemines.com
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