GBN: TSX Venture Exchange
SASKATOON, Aug. 18 /CNW/ - Golden Band Resources Inc. (GBN: TSXV) (the "Company") is pleased to provide an update on development progress for the La Ronge Gold Project. The Company is also pleased to report that it has closed the first tranche of the previously announced non-brokered private placement and issued 9,395,000 flow-through units at a price of $0.40 per flow-through unit and 4,202,143 non flow-through units at a price of $0.35 per non-flow-through unit for aggregate gross proceeds of $5,228,750.
Certain finders were paid an aggregate cash commission of $144,135 and were issued an aggregate of 398,229 finder's warrants. All securities issued in connection with the offering are subject to a hold period expiring on December 19, 2010. The second tranche of the offering will remain open until approximately August 31, 2010.
Jolu Mill Site
At the Jolu mill site, the Company has commenced construction and refurbishment activities and remains on schedule and on budget to commence gold production in the fourth quarter of 2010. Final engineering and design has been completed by Wardrop Engineering of Saskatoon. The general contractor, Kitsaki Procon JV, has received all documentation for the procurement of materials and construction drawings to take the project through to the commissioning phase. To date the following major activities have commenced or are nearing substantial completion:
- Jolu above ground tailings management facility dam footprint
- Ball mill motor rewind to 600Hp including spare motor;
- Cone crusher removal and shipment off site for rebuild;
- Construction of the 25Kv grid power line.
Additional contracts have been let for supply of the following equipment:
- High voltage electrical equipment including transformers and
- Process air compressors.
Bingo Underground Exploration Development
The previously announced exploration development work (see news release of February 17, 2010) was completed ahead of schedule with 787 metres of development completed on the 1355 and 1340 metre levels. Final assay results are pending.
The Company commenced further development of the decline, and has now advanced the ramp access to the 1265 metre level, at a depth of 120 metres from surface. Development of the 1340 metre level footwall drift has been completed.
Surface construction activity (see news release of June 15, 2010) is on schedule and under budget, and the Bingo deposit development progress is on track to commence commercial production activity in the fourth quarter of 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: 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 planned development, potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of potential financing, development and exploration activities generally, the timing and results of future resource estimates, 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: Gary Haywood, P.Eng., COO, Golden Band Resources Inc., Phone: 306 955 0787 x7124, 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