Golden Band Resources Announces Closing of Private Placement
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SASKATOON,
The Company also sold on a non-brokered basis, subject to approvals of the TSX Venture Exchange regarding participation of insiders, 2,839,333 Flow Through Units at a price of CAD$0.30 per Flow Through Unit and 900,000 non flow through units (the "Non Flow Through Units") of the Company at a price of CAD$0.25 per Non Flow Through Unit for aggregate gross proceeds to the Company of CAD$1,076,800 from the non-brokered offering. With this, the Company now has 157,936,957 shares issued and outstanding, and 198,719,784 shares on a fully diluted basis. The Company expects to close additional sales of Non Flow Through Units in January.
Each Flow Through Unit consists of one flow through common share in the capital of the Company (a "Flow Through Share") and one-half of one common share purchase warrant, (each whole common share purchase warrant, a "Warrant"). Each whole Warrant will entitle the holder to acquire one non-flow through common share (a "Warrant Share") at a price of
The proceeds of the sale of the Flow Through Units will be used for underground exploration at the Company's Bingo deposit to increase the resource definition. This is in connection with the Company's plans to start gold production on the La Ronge Gold Project. Underground exploration does not qualify for the 10% Saskatchewan Mineral Exploration Tax Credit or for the 15% federal exploration tax credit for flow-through shares. The proceeds from the sale of the Non Flow Through Units will be used for general working capital purposes.
The Agents were paid a cash commission equal to 6% of the gross proceeds from sales of Flow-Through Units made by the Agents and were issued an aggregate of 142,502 broker warrants (the "Broker Warrants") equal to 6% of the aggregate number of Flow Through Units sold by the Agents. Each Broker Warrant is exercisable for one common share at a price of CAD$0.30, for a period of two years following the issuance.
All securities issued in connection with the offering are subject to a hold period expiring on
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
On behalf of the Board of Directors of Golden Band Resources Inc., "Ronald K. Netolitzky" Ronald K. Netolitzky Executive Chairman
All of Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of Frank Hrdy, P.Geo., Golden Band's VP Exploration, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All of Golden Band's development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of
Cautionary Statements on Forward-Looking Information: The news release includes certain "forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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For further information: Rodney Orr, Vice President, Golden Band Resources Inc., Phone: (306) 955-0787 x7123, Fax: (306) 955-0788, Email: [email protected], www.goldenbandresources.com; Wani Capital Corp.: Raju Wani, (403) 240-0555, Email: [email protected], www.goldenbandresources.com
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