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SASKATOON, Aug. 12 /CNW/ - Golden Band Resources Inc. (GBN: TSX.V) (the "Company") is pleased to announce that, it has closed off subscriptions for the first tranche of the non-brokered flow-through and non flow-through private placement financing announced on June 22, 2010. The Company will proceed to close the first tranche of the private placement upon receipt of the acceptance of the TSX Venture Exchange, which the Company expects to obtain shortly. A total of 9,412,500 FT Units (the "FT Units") will be 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 $3,765,000. A total of 4,182,143 non flow-through Units (the "NFT Units"), will be issued for gross proceeds of $1,463,750. Each NFT Unit consists of one common share and one-half of one share purchase warrant. The gross total proceeds in this first tranche closing will be $5,228,750.
The shares 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. Each whole FT Warrant will entitle the holder to purchase one flow-through common share at an exercise price of $0.50 until December 31, 2010 and thereafter at an exercise price of $0.55 until August 31, 2011. Each whole NFT Warrant will entitle the holder to purchase one common share at an exercise price of $0.45 until December 31, 2010 and thereafter at an exercise price of $0.50 until August 31, 2011.
The Company will pay finder's fees of $144,555 and issue 399,279 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. We anticipate closing the final tranche on or about August 31, 2010. Several directors and officers of the Company have participated in the first tranche of the private placement in an aggregate amount of $1,185,000.
The Company expects to raise gross aggregate proceeds to a maximum of $7,000,000 through the sale of the FT Units and NFT Units. The proceeds of the sale of the FT Units and NFT Units will be used to continue underground exploration at the Bingo Deposit, to undertake exploration at the EP and Komis Deposits and to provide general working capital.
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 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.
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. Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of James Wong, P.Eng.,P.Geo., who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
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 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 offerings, the timing and success of potential financing, 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.
SOURCE Golden Band Resources Inc.
For further information: For further information: Mark J. Thiel, Golden Band Resources Inc., Phone: 306 955 0787 x7128, Fax: 306 955 0788, Email: email@example.com; Investor Relations: Raju Wani, 403 240 0555; Tony Perri, 604 682 6852; Email: firstname.lastname@example.org, www.goldenbandresources.com