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Faircourt Gold Income Corp. closes offering at $11 million

^{Published on 2009-07-09 06:47:11, Last Modified on 2009-07-09 06:47:19 - Market Wire}
 

 /THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES./ TORONTO, July 9 /CNW/ - (TSX:FGX): Faircourt Asset Management Inc., the manager of Faircourt Gold Income Corp. (the "Company"), is pleased to announce that the Company has completed its previously announced secondary public offering ("Offering") of 1,220,000 units ("Units") of the Company, each Unit consisting of one Class A Share ("Share") and one Class B Warrant ("Warrant"), at a price of $9.05 per Unit for aggregate gross proceeds of $11,041,000. Each whole Warrant entitles the holder to purchase one Share at a subscription price of $9.05 on, and only on, any of March 31, June 30, September 30 or December 31, or the business day immediately following such date if such date falls on a non-business day, until and including June 30, 2014. Warrants not exercised by 4:01 p.m. (Toronto time) on June 30, 2014 will be void and of no value. The Shares and the Warrants separate immediately upon issue. The Shares trade on the Toronto Stock Exchange ("TSX") under the symbol FGX, and the Warrants began trading today on the TSX under the symbol FGX.WT.B. The syndicate of agents for the offering was led by Canaccord Capital Corporation and included CIBC World Markets Inc., Scotia Capital Inc., Dundee Securities Corporation, GMP Securities L.P., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Blackmont Capital Inc., Desjardins Securities Inc., Haywood Securities Inc., Manulife Securities Incorporated, and Research Capital Corporation. The net proceeds of the Offering will be invested by the Company in accordance with its investment objectives and investment strategy, subject to the Company's investment restrictions. For information concerning the Company or the Offering please refer to the final prospectus dated June 25, 2009, a copy of which may be obtained from your financial advisor. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which the securities are not qualified for sale. About Faircourt Gold Income Corp. Faircourt Gold Income Corp. invests in a portfolio primarily consisting of common shares of senior and intermediate gold producers that are part of the S&P/TSX Global Gold Index (the "Portfolio"). The Company may also invest up to 30% of its net asset value in gold bullion. Faircourt Asset Management Inc. is the manager of the Company (the "Manager"). The Company has engaged Connor, Clark & Lunn Capital Markets Inc. to write covered call options on securities held in the Portfolio and cash secured put options on securities desired to be held in the Portfolio. It is the Manager's belief that by utilizing the option strategy, it will assist in providing shareholders of the Company with lower volatility and potentially enhanced returns than they would otherwise have achieved by owning the individual securities in the Portfolio directly.

For further information: Charles Taerk, President, or Douglas Waterson, CFO, at (416) 364-8989 or 1-800-831-0304