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Precipitate Gold closes nonbrokered private placement

PrecipitateGold Corp. received approval from the TSX Venture Exchange to closea nonbrokered privateplacement of about C$2.6 million.

The company first closed a tranche of 4,999,000 units worthabout C$1.2 million. The second and final tranche consisted of the issuance ofan additional 5,381,000 units for proceeds of about C$1.3 million.

Each unit consists of 1 common share and 1 share purchasewarrant. Warrants are exercisable for 1 common share at 35 cents at any timewithin 12 months of the issuance date. The company paid C$97,800 and issued391,200 finders warrants in connection with the offering.

Precipitate Gold will use the proceeds to continueexploration at its Juan deHerrera project in the Dominican Republic. Thecompany's main focus for its next stage of exploration will be to start asecond-phase drill campaign at the Ginger Ridge zone. The company will also useproceeds from the placement for the ongoing advancement of multiple newlydelineated geochemical anomalies within the company's property and for generalworking capital purposes.