Ratel Gold files final IPO prospectus and announces CGA shareholder approval

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PERTH, Australia, July 6 /CNW/ - Ratel Gold Limited (the "Company") is pleased to announce that it has filed a final prospectus in connection with its anticipated initial public offering ("IPO"). Under the terms of the IPO, the Company intends to issue a minimum of 40,000,000 common shares and a maximum of 70,000,000 common shares at an issue price of C$0.20 per share, raising gross proceeds of C$8,000,000 to C$14,000,000. Haywood Securities Inc. ("Haywood") is acting as agent for the IPO pursuant to an agency agreement dated June 29, 2010. The offering is expected to close on or about August 6, 2010 (the "Closing Date").

The IPO involves a spin off of the Segilola Gold Project in Nigeria and the Mkushi Copper Project in Zambia from CGA Mining Limited ("CGA"). Shareholders of CGA approved this spin off at a special meeting on July 2, 2010.

The Company has received conditional approval from the Toronto Stock Exchange (the "Exchange") for the listing of the Company's common shares under the symbol "RTL". Trading will commence on the Exchange on the Closing Date. The net proceeds of the IPO will be used to fund exploration and feasibility activities on the Segilola Gold Project and Mkushi Copper Project, plus general, administrative and working capital purposes.

A copy of the Company's final prospectus has been filed with Canadian securities regulators in each of the Provinces of Canada, other than Québec, and is available at www.sedar.com.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

    
    About the Company
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Ratel Gold Limited is a mining exploration company focused on developing gold and copper deposits in Africa. The Company is led by an experienced management and technical team with exploration and mine production experience.

    
    Cautionary Note Regarding Forward-looking Statements
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This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, the terms of the offering, the completion of the spin-off and the use of net proceeds are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects.; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the prospectus of the Company dated June 29, 2010 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.

For further information: about the Company, please refer to the Company's filings on SEDAR (www.sedar.com) or contact Geoff Jones, CEO of the Company by telephone at [phone]