VANCOUVER, May 26, 2011 /CNW/ - Jet Gold Corp. (TSX-V: JAU) (the "Company") is pleased to announce the closing of a non-brokered
private placement with the MineralFields Group of 2,954,545
flow-through units ("FT Units") at a price of $0.22 per FT Unit for
total proceeds of $650,000. Each FT Unit consists of one flow-through
common share and one non-flow-through share purchase warrant with a
term of 24 months and an exercise price of $0.25, and is subject to a
hold period until September 14, 2011.
In connection with the private placement, the Company paid a cash
finder's fee of 6% of the gross proceeds and issued options to acquire
units equal to 10% of the number of FT Units subscribed for to Limited
Market Dealer Inc. Each option has a term of 24 months, is subject to a
hold period until September 14, 2011, and entitles the holder to
purchase one unit at an exercise price of $0.25 in year 1 and $0.35 in
year 2. Each unit consists of one common share and one share purchase
warrant with a term of 24 months and an exercise price of $0.35 in year
1 and $0.45 in year 2.
The completion of the private placement and the payment of the finder's
fees remain subject to the receipt of all necessary regulatory
approvals, including the approval of the TSX Venture Exchange.
The proceeds of the flow-through financing will be used to conduct
exploration on the Company's Big Hammer gold/tellurium property located
SE of Terrace, British Columbia and also a work program on the
company's Kshish molybdenum property located NE of Terrace. The Company
expects to start the exploration of both properties with an airborne
survey over both claim groups in June. Ground exploration of sampling,
geological mapping and trenching is expected to follow on the Big
Hammer property. Exploration work on the Kshish property is expected
to begin in late June or early July depending on ground conditions.
Brad J. Moynes, President of the Company stated, "We are very pleased to
be entering into this relationship with the MineralFields Group. This
financing is an important milestone in the growth of the Company and we
look forward to working with MineralFields as we develop our holdings
in the Big Hammer and the Kshish properties."
"About MineralFields, Pathway and First Canadian Securities ®"
MineralFields Group (a division of Pathway Asset Management), based in
Toronto, Montreal, Vancouver and Calgary, is a mining fund with
significant assets under administration that offers its tax-advantaged
super flow-through limited partnerships to investors throughout Canada
as well as hard-dollar resource limited partnerships to investors
throughout the world. The sector focus is on gold and precious metals,
base metals, rare earths and lithium, potash, uranium, oil, coal and
gas. Pathway Asset Management also specializes in the manufacturing and
distribution of structured products and mutual funds (including the
Pathway Multi Series Funds Inc. corporate-class mutual fund series).
Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer
Inc.) is active in leading resource financings (both flow-through and
hard dollar PIPE financings) on competitive, effective and
service-friendly terms, and offers investment banking, mergers and
acquisitions, and mining industry consulting, services to resource
companies. MineralFields and Pathway have financed several hundred
mining and oil and gas exploration companies to date through First
Canadian Securities ®, and have raised over $1 billion in their 10 year
On behalf of the board of directors,
Jet Gold Corp.
"Brad J. Moynes"
Brad J. Moynes
President & CEO
"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."
Statements containing forward-looking information express, as at the
date of this news release, the Company's plans, estimates, forecasts,
projections, expectations, or beliefs as to future events or results
and are believed to be reasonable based on information currently
available to the Company.
Forward-looking statements and information are based on assumptions that
financing and personnel will be available when required and on
reasonable terms, and all necessary regulatory approvals and
shareholder approval will be obtained, none of which are assured and
are subject to a number of other risks and uncertainties
There can be no assurance that forward-looking statements will prove to
be accurate. Actual results and future events could differ materially
from those anticipated in such statements. Readers should not place
undue reliance on forward-looking information.
SOURCE Jet Gold Corp.
For further information:
For more information about the Company please visit www.jetgoldcorp.com or contact:
Brad J. Moynes
Tel: 604.484.5761 x31