re: completion of c$75 million financing 20 April 2006The...

re: completion of c$75 million financing 20 April 2006
The Manager - Companies
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000 (1 page by email)
Dear Madam
COMPLETION OF C$75 MILLION FINANCING

The Directors are pleased to advise that Palmarejo Silver and Gold Corporation, a Canadian TSX Venture
Exchange ('TSXV') listed corporation (TSX-V: PJO) which is currently approximately 79% owned and
controlled by the Company, has successfully completed its previously announced private placement
financing of 7,894,737 special warrants at a price of C$9.50 per special warrant for total gross proceeds of
C$75,000,001.50.

Each special warrant entitles the holder to receive, without further consideration, upon exercise or deemed
exercise, one common share and one half common share purchase warrant.

Each whole warrant will be exercisable at a price of C$12.50 for a period of 18 months from the closing. The offering was completed through a syndicate of underwriters led by Sprott Securities Inc., and including Dundee Securities Corporation and Haywood Securities Inc. of Canada.

The special warrants and the underlying common shares and warrants are subject to a four month hold
period, expiring 20 August 2006, until such time as a receipt is obtained for a final prospectus in connection
with the offering.

Special warrants that have not been previously exercised will be deemed to have been exercised on the earlier of (i) the third business day after a receipt has been issued by a securities regulatory authority for a final prospectus and (ii) four months and a day following the closing of the offering.

In the event a receipt for the final prospectus is not obtained within 60 days of the closing of the offering, each special warrant will entitle the holder to receive 1.04 Palmarejo common shares and 0.52 warrants.
The net proceeds of the offering will be used for development and exploration of the Palmarejo-Trogan
project and for working capital.

The Company has subscribed for 2,105,237 special warrants for an aggregate subscription price of
C$19,999,751.50.
NOT FOR DISSEMINATION TO USA NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE USA.
For further information, contact Norman Seckold or Peter Nightingale on (61-2) 9247 5300.
Yours sincerely
Peter J. Nightingale
Director
pjn3474

http://sa.iguana2.com/cache/a0ca5ea93b05c2cff189326a944a1d9e/ASX-BSG-408273.pdf