Energold Drilling Corp. (TSXV:EGD) announced a private placement of secured convertible debentures for gross proceeds of up to CAD 12.50 million on July 9, 2014. The convertible debentures will have a term of three years and will bear interest at a rate of 12.85% compounded annually and payable quarterly. The convertible debentures will be convertible into common shares of the company at a conversion price of CAD 3 per share. At any time after July 21, 2016, the company after giving a 90 days written notice, prepay the convertible debentures, in whole or in part, including all outstanding interest accumulated to the date of prepayment, with an additional payment of 1.5% of the amount to be prepaid, which shall be adjusted downward for each day that redemption occurs after July 21, 2016. In case of a change of control, the company will be required to purchase the convertible debentures for a cash price equal to 110% of the principal amount outstanding plus accrued and unpaid interest. The closing of the transaction is expected to occur on or before July 21, 2014 and is subject to receipt of applicable regulatory approvals, including approval of the TSX-V.

On July 21, 2014, Energold Drilling Corp. closed the transaction. The company increased the size of the transaction and raised gross proceeds of CAD 13,500,000 in the transaction. The transaction included participation from 15 placees, including Frederick W. Davidson, Chief Executive Officer of the company, who has invested CAD 100,000, James H. Coleman, who has invested CAD 300,000, Linda Woody, who has invested CAD 100,000, Brian Bertram, who has invested CAD 500,000, Darrell Bertram, who has invested CAD 500,000, Walter Sellmer, who has invested CAD 250,000, Michael Beley, who has invested CAD 200,000, and Mark Corra, who has invested CAD 300,000. Insiders of the company participated for CAD 3,000,000, representing 22% of the investment amount. The convertible debentures will mature on July 20, 2017. The securities issued are subject to a hold period, expiring on November 22, 2014. TSX Venture Exchange has accepted for filing documentation with respect to the transaction.