/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, March 12, 2013 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company", "Guyana Goldfields" or "GGI") is pleased to announce that it has closed its previously announced
private placement financing with the International Finance Corporation
("IFC") of the World Bank Group pursuant to which IFC subscribed for an
aggregate of 1,633,335 common shares of the Company (the "Common Shares"), at a price of C$3.40 per Common Share for aggregate gross proceeds
of C$5,553,339 (the "Offering").
The IFC now holds an aggregate of 6,911,516 Common Shares (or 5.5%) of
The net proceeds of the Offering will be used to fund the development of
the Aurora Gold project, for exploration expenditures and for general
corporate purposes. The Offering remains subject to the final approval
of the Toronto Stock Exchange.
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 United States absent registration or an applicable 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.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. IFC fosters sustainable
economic growth in developing countries by supporting private sector
development, mobilizing private capital, and providing advisory and
risk mitigation services to businesses and governments. For more
information, visit www.ifc.org.
About Guyana Goldfields Inc.:
Guyana Goldfields Inc. is a Canadian based company, focused on the
exploration and development of gold deposits in Guyana, South America
where the Company has operated since 1996. The Company is focused on
bringing the Aurora Gold Project into production with infrastructure
development currently underway. Active exploration continues at Aurora
and at the Company's Aranka Group of Properties with the intention of
further expanding these resources. Greenfields exploration by our
experienced team of geologists is also ongoing in the broader Aranka
group of properties. As at the date hereof, the Company has
approximately C$124 million in cash and cash equivalent and no debt;
there are approximately 126,125,149 shares issued and outstanding.
This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the
estimation of mineral resources. Often, but not always, forward-looking
statements can be identified by the use of words and phrases such as
"plans," "expects," "is expected," "budget," "scheduled," "estimates,"
"forecasts," "intends," "anticipates," or "believes" or variations
(including negative variations) of such words and phrases, or state
that certain actions, events or results "may," "could," "would,"
"might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and are based on
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of GGI to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
final findings set forth in the "NI 43-101 Technical Report, Updated
Feasibility Study - Aurora Gold Project" dated January 29, 2013,
general business, economic, competitive, political and social
uncertainties; the actual results of exploration activities; the
receipt of applicable regulatory approvals; changes in project
parameters as plans continue to be refined; accidents, labour disputes
and other risks of the mining industry; political instability; delays
in obtaining governmental approvals or financing or in the completion
of development or construction activities, as well as those factors
discussed in the section entitled "Risk Factors" in GGI's annual
information form. Although GGI has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward looking statements, there
may be other factors that cause actions, events or results to differ
from those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and GGI disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
results, except as may be required by applicable securities laws. There
can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements.
SOURCE: Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935