Extorre Gold Mines (XG.TSX, AMEX: XG) announced a C$50 million bought deal financing, the net proceeds of which will be used  for exploration and development of the Company’s mineral projects in Argentina and for general working capital purposes.

Last month the emerging gold company reported the filing of an updated National Instrument 43-101 compliant mineral resource estimate for its flagship Cerro Moro Project in Santa Cruz Province, Argentina. The resource estimate contained 1.35 million gold equivalent ounces in the Indicated Category and 1.05 million gold equivalent ounces in the Inferred Category.

Highlights:

* The financing is comprised of 5.3 million common shares at C$9.45 per share for gross proceeds of C$50,085,000

* Extorre will grant the underwriters of the transaction an over-allotment option, exercisable prior to the closing of the offering, to purchase from the Company up to an additional 795,000 common shares at C$9.45 per share to raise additional gross proceeds of up to C$7.5 million

* The financing is expected to close on or before February 22, 2012

Matt Williams, Exploration Manager:

“Drilling the extensions of the known veins at Cerro Moro has successfully expanded multiple areas of mineralization that with further drilling could lead to additional resources on the property. Importantly this drilling demonstrates that very high grades are not confined to a particular vein or site on the property.”

Daniel Earle, TD Securities:

“We expect the high grades to generate high production and low costs over the early years of the project and for the company to continue to try and add high grade ounces and push low grade ounces out further into the future as we expect it has done with this resource update.”