A total of 2,857,143 units at a price of CDN$1.05 per unit were sold resulting in gross proceeds to the Company of CDN$3,000,000. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase an additional common share at a price of CDN$1.25 for a period of one year from closing of the private placement.
Finder's fees totaling CDN$230,492 will be paid in connection with the financing.
All securities will be subject to a four-month hold period expiring on
The Company also received TSXV approval of the acquisition of three mining exploration licenses, the Onjuul coal project, from two private Mongolian companies. The acquisition consists of US$17.5 million over 22 months, the issuance of 3,400,000 common shares and a 6% royalty on production. The first installment of the purchase price of US$1,000,000 and 2,400,000 common shares is due 60 days after approval by the TSXV, 500,000 common shares 12 months after approval and 500,000 common shares 18 months after approval. All shares are subject to a four month hold period. An aggregate finder's fee of
With the completion of the private placement the Company has begun mobilizing the drilling program. The drill program calls for drilling of up to 20 holes of 200-metre depth. The Company will be drilling selected holes to much greater depths to test the thickness of the coal-bearing formation. Depending on the findings and the time involved, the Company may expand both the area and depth of holes to more fully evaluate the Onjuul structure. The Company will have two drill rigs operating and the drillers estimate that the program will take approximately 45 to 60 days to complete.
As previously announced the Company received clearance from the Chief Justice of the Supreme Court of
On behalf of the Board of Directors Gulfside Minerals Ltd. "Robert L. Card" Robert L. Card President
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in
Neither the 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.
For further information: Investor Contact: Del Thachuk, Delmor Enterprises Ltd., (604) 538-5995, [email protected], www.gulfsideminerals.com
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