Major funding for Plexus Res.

An agreement has been reached between Total Energold (TSE) and Plexus Resources (TSE), whereby Total will subscribe for a private placement of six million common shares of Plexus at $3 per share. The price is payable at $2.75 per share in cash and a 25cents-per-share transfer to Plexus of Total’s exploration subsidiary Sovereign Explorations. Total will also receive warrants to acquire 2,150,000 additional shares at $3 per share over a 5-year period. The agreement is subject to approval by Total’s board of directors, Plexus shareholders and regulatory authorities. On completion, Total will hold at least a 50% interest in Plexus.

The deal will provide Plexus with $16.5 million cash. These proceeds will be used to reduce debt associated with the Denton-Rawhide gold mine in Nevada, and to finance development of two other advanced mining projects in the U.S., said Plexus President Arthur Ditto.