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TORONTO, Feb. 22, 2013 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company" or "GGI") is pleased to announce that it has closed its previously announced
bought deal offering (the "Offering") pursuant to which the Company has issued 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 Common Shares were sold pursuant to an
underwriting agreement with a syndicate of underwriters led by BMO
Capital Markets and including Cormark Securities Inc., RBC Dominion
Securities Inc., Scotia Capital Inc., Raymond James Ltd., TD Securities
Inc. and Paradigm Capital Inc.
The net proceeds of the Offering will be used to fund the development of
the Aurora Gold Project, for exploration expenditures and for general
The Company has also 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 4,413,000 Common Shares of
the Company to cover over-allotments, if any, and for market
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$124 million in cash and cash equivalent and no debt;
there are approximately 124,491,814 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 - Aurora Gold Project" dated January 29, 2013,
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.
SOURCE: Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935