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TORONTO, Jan. 30, 2013 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company") has announced today that it has entered into an agreement with a
syndicate of underwriters led by BMO Capital Markets, as bookrunner,
under which the underwriters have agreed to buy on a bought deal basis
by way of a short form prospectus, 29,420,000 common shares (the
"Common Shares"), at a price of C$3.40 per Common Share for gross
proceeds of approximately C$100 million (the "Offering"). The Company
has granted the Underwriters an option, exercisable at the offering
price for a period of 30 days following the closing of the Offering, to
purchase up to an additional 15% of the Offering to cover
over-allotments, if any. The offering is expected to close on February
22, 2013 and is subject to the Company receiving all necessary
The net proceeds of the offering will be used to fund the development of
the Aurora Gold project and for general corporate purposes.
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 an applicable 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 Guyana Goldfields Inc.:
Guyana Goldfields Inc. is a Canadian based company, focused on the
exploration and development of gold deposits in Guyana, South America
where the Company has operated since 1996. The Company is focused on
bringing the Aurora Gold Project into production with infrastructure
development currently underway. Active exploration continues at Aurora
and at the Company's Aranka Group of Properties with the intention of
further expanding these resources. Greenfields exploration by our
experienced team of geologists is also ongoing in the broader Aranka
group of properties.
As at the date hereof, the Company has approximately C$32 million in
cash and cash equivalent and no debt; there are approximately 95
million shares issued and outstanding.
This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the
estimation of mineral resources. Often, but not always, forward-looking
statements can be identified by the use of words and phrases such as
"plans," "expects," "is expected," "budget," "scheduled," "estimates,"
"forecasts," "intends," "anticipates," or "believes" or variations
(including negative variations) of such words and phrases, or state
that certain actions, events or results "may," "could," "would,"
"might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and are based on
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of GGI to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
final findings set forth in the NI 43-101 Technical Report, Updated
Feasibility Study, general business, economic, competitive, political
and social uncertainties; the actual results of exploration activities;
changes in project parameters as plans continue to be refined;
accidents, labour disputes and other risks of the mining industry;
political instability; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities, as well as those factors discussed in the section entitled
"Risk Factors" in GGI's annual information form. Although GGI has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated, estimated
or intended. Forward-looking statements contained herein are made as of
the date of this news release and GGI disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results, except as may be required by
applicable securities laws. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance
on forward looking statements.
SOURCE: Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
CEO and Director
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935