GBN: TSX Venture Exchange
SASKATOON, April 9 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (GBN: TSXV) is pleased to announce that it has entered into an agreement to buy back the 8% participating interest in the Bingo, Alimak/Decade, and RKN properties held by Virginia Energy Resources Inc. (formerly Santoy Resources Ltd.). Santoy earned the 8% participating interest in 2008 by funding certain exploration expenditures (see previous news release of August 6, 2008). The acquisition will result in Golden Band once again holding a 100% interest in these properties.
The re-acquisition of the 8% interest held by Virginia Energy is important in securing the debt financing (see previous news release of February 18, 2010), which will be used to fund construction and the commencement of commercial production later this year.
Under the terms of the agreement, Golden Band will pay to Virginia Energy a cash payment of $750,000 and will issue to Virginia Energy a total of 7,500,000 common shares in the capital of Golden Band. The shares issued are at a deemed price of $0.40 per share to extinguish $3,000,000 of the repurchase price. In completing the buyback in advance of the start of commercial production, the Company will see a $250,000 reduction in the cash payment. The common shares will be held in escrow pending release on a quarterly basis, beginning November 1, 2010.
Golden Band and Virginia Energy have two common directors. These directors abstained from voting at the meeting of the directors of Golden Band held to review and approve of this transaction.
The transaction is subject to regulatory approval and is expected to close as soon as such regulatory approval has been obtained.
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 (TSXV: GBN) whose focus is the long-term, systematic exploration and development of its largely 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 development and production from 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 Vice President 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: firstname.lastname@example.org; Investor Relations: Raju Wani, (403) 240-0555, Email: email@example.com, www.goldenbandresources.com