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Pacific Gold Corp. Enters into Standstill Agreement on Convertible Notes
Lender Will Not Receive Installment Payments of Common Stock until January, 2009 Unless Share Price Reaches Certain Thresholds
TORONTO, October 22, 2008 - Pacific Gold Corp. (OTCBB: PCFG) announced today that it has reached an agreement with Yorkville Advisors (formerly Cornell Capital Partners) to adjust the repayment terms of the convertible notes originally issued in February 2007.
Yorkville Advisors has agreed that no installment payments on the notes will be made until January 15, 2009 unless the price of PCFG stock is above 1.5 cents ($0.015) per share for at least 8 of the 10 days prior to an installment payment being due.
The principal remaining on the original face value of the $2,440,000 in notes sold to Yorkville is now $267,000. The notes mature on February 26, 2009.
"By temporarily setting a floor price of the installment payments of the Yorkville note and with a reduction in the outstanding debt, we hope that investors will be able to more easily recognize the fair value of the Company stock." said Rob Landau, CEO.
Nevada Rae Gold, a wholly-owned subsidiary of Pacific Gold Corp., currently has over 1,700 acres of land covered by claims and leases located between the Cortez and Battle Mountain Trends. This northern area of Nevada is responsible for over 80% of all Gold Production in the U.S. The Company's claims and leases contain up to 500,000 ounces of gold.
Contact: Dan Schustack, CEOcast, Inc. for Pacific Gold at (212) 732-4300
To find out more about Pacific Gold Corp. (OTCBB: PCFG), visit our website at www.pacificgoldcorp.com. Or contact the Company directly at 416-214-1483.
About the Company
The Company's business plan provides for the acquisition and development of production-ready and in-production mining operations. The Company is focused on alluvial gold and base metals operations located in western North America. Pacific Gold Corp. owns five operating subsidiaries: Nevada Rae Gold, Inc. ("Nevada Rae") owns and operates the Black Rock Canyon gold mine, located in north-central Nevada; Pilot Mountain Resources Inc. ("Pilot Mountain") owns Project W, a large tungsten based deposit in Nevada; Fernley Gold, Inc. ("Fernley Gold") acquired exclusive lease rights to mine the Lower Olinghouse Placers in north-western Nevada; Oregon Gold, Inc. ("Oregon Gold") owns the Bear Bench claims and Defiance mine, located in south-western Oregon; and Pacific Metals Corp. ("Pacific Metals") owns claims in San Juan and Delores Counties, Colorado, encompassing the historic Graysill Mine.
This news release includes forward-looking statements that reflect Pacific Gold Corp.'s current expectations about its future results, performance, prospects and opportunities. Pacific Gold Corp. has tried to identify these forward-looking statements by using words and phrases such as "may", "will", "expects", "anticipates", "believes", "intends", "estimates", "should", "typical", "we are confident" or similar expressions. These forward- looking statements are based on information currently available to Pacific Gold Corp. and are subject to a number of risks, uncertainties and other factors that could cause the Company's actual results, performance, prospects of opportunities in the remainder of 2008 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.