Energold Drilling secures $2M facility with Extract Capital and Sprott

Energold Drilling Corp. (TSX-V: EGD) has arranged working capital facility of up to $2,000,000. The facility will be made available by Extract Capital Master Fund Ltd., and Sprott Hedge LP 1 and Sprott Hedge LP 2 (Sprott) with each Extract Capital and Sprott committing maximum amount of $1,000,000.

Energold Drilling intends to use the facility to fund new projects that were not foreseen during the budgeting process.

Energold Drilling is a leading global specialty drilling company that services the mining, energy, infrastructure, geothermal, water and manufacturing sectors in 25 countries.

photo credit: Energold Drilling

News Release

March 01, 2018
Energold Drilling Corp. Announces $2 Million Working Capital Facility with Extract Capital and Sprott to Fund Growth

Energold Drilling Corp. (EGD: TSX.V) (“Energold” or “the Company” or “Energold Group”), a leading worldwide drilling operator and manufacturer, is pleased to announce that it has successfully arranged working capital facility of up to C$2,000,000 (the “Facility”). The Facility will allow the Company to fund new projects that were not foreseen during the budgeting process.

The Facility will be made available by Extract Capital Master Fund Ltd. (“Extract”) and Sprott Hedge LP 1 and Sprott Hedge LP 2 (together, “Sprott”), each in the maximum amount of C$1,000,000 million, substantially upon the following key terms:

Interest shall accrue at the rate of 14% per annum, payable monthly in arrears.
The Loan shall be unsecured and shall mature after six months.
Prepayments of the Loan are permitted without notice, bonus or penalty.

As partial consideration for the Facility, Energold may issue to the Lenders an aggregate of up to 2,000,000 common share purchase warrants (collectively, the “Warrants”), with each Warrant exercisable to acquire one common share of Energold (collectively, the “Warrant Shares”) for a period of one year from the date of issuance. Energold has issued 600,000 Warrants to Extract and 600,000 Warrants to Sprott, with each Warrant exercisable at a price (subject to customary adjustment provisions) of $0.54 per Warrant Share. Energold may require the exercise of the Warrants if volume weighted average price of the common shares of Energold (“Common Shares”) is equal to or above C$1.10 for a period of 20 consecutive trading days.

The Loan, the issuance of the Warrants and the Warrant Shares are subject to all necessary regulatory approvals, including approval of the TSX Venture Exchange.

“All of our business lines are recovering with new contracts being signed weekly. With the Company on solid footing to meet its obligations, we put in place this working capital facility to meet added growth over the balance of 2018. We expect to update the market in short order as these new pieces of business are confirmed.” said Energold President and Chief Executive Officer, Fred Davidson.

About Energold Drilling Corp.

Energold Drilling Corp. is a leading global specialty drilling company that services the mining, energy, infrastructure, geothermal, water and manufacturing sectors in 25 countries. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to onsite operations as well as manufacturing.

On behalf of the Directors of Energold Drilling Corp.,

“Frederick W. Davidson”
President, CEO

For further information, please contact:

Steven Gold – Chief Financial Officer
(416) 275-4070 or via email at sgold@energold.com

Or

Jerry Huang – Director, Corporate Development & Investor Relations
(604) 681-9501 or via email at jhuang@energold.com

1100 – 543 Granville St.
Vancouver, BC V6C 1X8
www.energold.com Telephone 604 681 9501
Facsimile 604 681 6813
info@energold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.