July 7, 2010 – Vancouver, British Columbia. Indigo Exploration Inc. (TSX-V: IXI) reports that further to its news release of June 28, 2010 announcing the closing of a private placement of subscription receipts, the gross proceeds of $1,037,000 received from the sale of 5,185,000 subscription receipts (the "Subscription Receipts") at a price of $0.20 per Subscription Receipt have been released from escrow by Computershare Trust Company of Canada ("Computershare"), acting as subscription receipt agent. Computershare has issued 5,185,000 common shares (the "Shares") of the Company and 5,185,000 non‑transferable share purchase warrants (the "Warrants") upon conversion of the Subscription Receipts. Each Warrant entitles the holder to purchase one additional share of the Company at a price of $0.30 per share until June 25, 2011. If during the exercise period of the Warrants the closing price of the Company's shares is $0.45 per share or higher for 20 consecutive trading days, the Company may accelerate the expiry time of the Warrants to 20 calendar days from the date written notice of same is provided to the holders. The Shares and Warrants are subject to resale restrictions until October 26, 2010.
The Subscription Receipts were sold on a private placement basis. In connection with the offering of the Subscription Receipts, the Company has paid finder's fees to certain finders. An aggregate of $78,960 was paid to finders and an aggregate of 344,800 finder's warrants (the "Finder's Warrants") were issued to finders. Each Finder's Warrant entitles the holder to acquire one common share of the Company at a price of $0.30 per share until June 25, 2011. If during the exercise period of the Finder's Warrants the closing price of the Company's shares is $0.45 per share or higher for 20 consecutive trading days, the Company may accelerate the expiry time of the Finder's Warrants to 20 calendar days from the date written notice of same is provided to the holders. The Finder's Warrants are subject to resale restrictions until October 31, 2010.
On Behalf of the Board of Directors,
"R. Tim Henneberry"
R.Tim Henneberry, P.Geo.
President and CEO
For further information, please contact:
Tim Henneberry: (604) 681-3422
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and include any information that addresses activities, events or developments that Indigo believes, expects or anticipates will or may occur in the future including Indigo's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.
Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. All such forward-looking information and statements are based on certain assumptions and analyses made by Indigo's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Indigo to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: inability to enter into a final binding agreement with respect to Sanu Burkina, risks related to the exploration and potential development of Indigo's projects, risks related to international operations, the conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as risk factors discussed in certain of Indigo's continuous disclosure documents filed on SEDAR.
There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, Indigo does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.