July 8, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Capital Gold Corp. (AMEX: CGC) (TSX: CGC) said it has closed a First Amended and Restated Credit Agreement with Standard Bank Plc., which will increase the company's previous line of credit.

The agreement amends and restates the prior credit agreement between the parties dated July 17, 2008.  The agreement was further amended to increase the aggregate principal of the senior secured revolving credit facility from U.S. $5 million to $7.5 million.

Amounts borrowed under the revolving facility bear interest at a rate per annum equal to the LIBO Rate, as defined in the credit agreement, for the applicable interest period plus the applicable margin.  The applicable margin for the revolving facility is 3% per annum.  

The borrowers are to use the proceeds of the revolving facility to fund general corporate and working capital requirements in connection with the El Chanate gold mining project and the Saric gold exploration project.

New York-based Capital Gold is a gold production and exploration company. Through its Mexican subsidiaries and affiliates, it owns 100% of the "El Chanate" gold mine located near the town of Caborca in Sonora, Mexico. It also owns and leases mineral concessions near the town of Saric, also in Sonora, that are undergoing preliminary exploration for gold and silver mineralization.

South Africa-based Standard Bank is an African banking group focused on emerging markets globally

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