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GBN: TSX Venture Exchange
SASKATOON, June 25 /CNW/ - Golden Band Resources Inc. (GBN: TSXV) (the "Company" or "Golden Band") is pleased to announce that it is arranging a non-brokered flow-through private placement through the offer of units (the "FT Units") at a price of $0.40 per FT Unit. The Company will also conduct a non-brokered, non flow-through, private placement of units (the "NFT Units") at a price of $0.35 per NFT Unit. Each FT Unit consists of one flow-through common share and one-half of one flow-through share purchase warrant, (each whole flow-through common share purchase warrant, a "FT Warrant"). Each NFT Unit consists of one common share and one-half of one share purchase warrant, (each whole common share purchase warrant, a "NFT Warrant").
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 June 30, 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 June 30, 2011.
The Company expects to raise gross aggregate proceeds of $5,000,000 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 Company will pay a cash fee of up to six percent (6%) of the gross proceeds of the private placements raised by finders and issue non-transferable warrants (the "Finder's Warrants") equal to six percent (6%) of the NFT Units and FT Units sold pursuant to the efforts of finders. Each Finder's Warrant is exercisable to acquire one common share of the Company at a price of $0.45, until June 30, 2011.
Certain directors and officers of the Company are expected to participate in the offering on the terms set forth above and such participation is subject to approval by the independent directors of the Company. The Company will be relying upon exemptions from the related party requirements under applicable securities legislation. The securities issued under the private placement will be subject to a four-month plus one-day holding period from the closing date in accordance with applicable securities laws. The Company anticipates closing of the Offering as soon as practicable subject to receipt of all necessary regulatory and TSX Venture Exchange approvals, which it expects to be on or about July 15, 2010. 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.
About Golden Band
Golden Band Resources Inc., 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, EP, and Golden Heart 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, www.goldenbandresources.com; Investor Relations: Raju Wani, 403 240 0555; Tony Perri: 604 682 6852, Email: firstname.lastname@example.org, www.goldenbandresources.com