GOLDEN BAND RESOURCES ANNOUNCES CLOSING OF PRIVATE PLACEMENT
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
GBN: TSX Venture Exchange
SASKATOON, Sept. 21 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (GBN: TSXV) is pleased to announce that it has closed the final tranche of the non-brokered flow-through and non flow-through private placement financing announced on June 22, 2010.
The gross total proceeds in this final tranche closing are $1,405,450 in addition to the $5,228,750 raised in the first tranche that closed on August 18, 2010. The net proceeds are to be used by Golden Band to assist it with the near-term development of its La Ronge Gold Project and for working capital purposes. As previously announced (see news release of September 2, 2010), Golden Band's Board of Directors has approved the production decision for the Bingo gold deposit, for a planned production start up in the fourth quarter of 2010.
A total of 3,065,000 flow-through units were issued (where each FT unit consists of one flow-through common share and one-half of one flow-through share purchase warrant), for gross proceeds of $1,226,000. Also, a total of 512,714 non flow-through units were issued for gross proceeds of $179,450 (where each NFT Unit consists of one common share and one-half of one share purchase warrant). A total of 1,532,500 flow-through share purchase warrants were issued to purchase 1,532,500 common shares at $0.50 per share to December 31, 2010 and at $0.55 per share to August 31, 2011. A total of 256,357 non-flow-through share purchase warrants were issued to purchase 256,357 common shares at $0.45 per share to December 31,2010 and at $0.50 per share to August 31, 2011.
The securities issued under this financing will be subject to a hold period of four months plus one day from the date of closing of the offering.
The Company will pay finder's fees of $57,747 and issue 145,920 finder's warrants on a portion of the funds raised. Each finder's warrant is exercisable to acquire one common share of the Company at a price of $0.45, until August 31, 2011. None of these securities have been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
The Company is also pleased to announce that it has realized $2,326,100 from the exercise of 8,307,500 warrants which had an exercise price of $0.28 and were due to expire on September 15, 2010.
About Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now poised to also become a gold producer. Golden Band is a Saskatchewan-based, publicly listed Company (GBN: TSXV) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 750 km(2), including twelve known gold deposits, four former producing gold mines, and the licensed Jolu gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path to becoming a sustainable gold producer. The Company is aggressively pursuing its near-term goal for the development and production of its Bingo, Komis, and EP gold deposits, with processing at the 100%-owned Jolu mill. Longer-term objectives include production from the Company's other deposits and the continuation of its highly successful exploration and acquisition strategy.
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 development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
Cautionary Statements on Forward-Looking Information: This news release includes certain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the planned use of proceeds of the Offering, repayment of the Notes according to their terms, development and exploration activities generally, and future plans and objectives of Golden Band are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events, or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
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: Mark J. Thiel, CA, VP Finance & CFO, Golden Band Resources Inc., Phone: 306.955.0787 x7128, Fax: 306.955.0788, Email: [email protected]; Investor Relations: Raju Wani: 403.240.0555; Tony Perri: 604.682.6852, Email: [email protected], www.goldenbandresources.com
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