VANCOUVER, Dec. 4, 2013 /CNW/ - Gold Bullion Development Corp. (TSXV:
GBB) (OTCPINK: GBBFF) (the "Company") or "Gold Bullion") announces that
it is considering raising funds by issuing a new series of shares, to
be called "Granada Royalty Shares", by way of private placement. The
purpose of the Granada Royalty Shares will be to allow investors to
participate in the security of gold ownership if and when Gold
Bullion's Granada Gold Property enters into commercial production. The
Granada Gold Property is near Rouyn-Noranda, Québec.
Following the commencement of commercial production at Gold Bullion's
Granada Gold Property, the Granada Royalty Shares will entitle the
holders thereof to receive a percentage of the refined gold produced
from the Granada Gold Property for so long as Gold Bullion has an
ownership interest in the Property. The aggregate percentage of the
refined gold to which holders of Granada Royalty Shares will be
entitled and the issue price of the Granada Royalty Shares will be
determined by Gold Bullion's Board of Directors prior to the issuance
of the shares. In certain circumstances, it may be possible for Gold
Bullion shareholders to acquire Granada Royalty Shares by tendering
their Gold Bullion common shares.
The Granada Royalty Shares will provide that Gold Bullion will make
payments to holders of the shares, on a quarterly basis, by depositing
the refined gold to which the holder is entitled or its equivalent in a
"metal account" or other account designated by the holder. In the
event that a holder has not designated an account into which the
refined gold is to be deposited, Gold Bullion will sell the refined
gold and pay the proceeds from the sale to the holder, net of
commissions, applicable taxes and any related expenses incurred by Gold
Bullion in making such sale.
Gold Bullion will have the right to redeem the Granada Royalty Shares at
any time. If Gold Bullion redeems Granada Royalty Shares, it will pay
to the holders a redemption price equal to the volume weighted average
trading price of the Granada Royalty Shares on the stock exchange on
which the shares are then listed for the last five days on which the
shares traded immediately prior to the date of Gold Bullion's
redemption notice. In the event that the Granada Royalty Shares are
not listed or posted for trading on a stock exchange, the redemption
price will be equal to the fair market value of the Granada Royalty
Shares as determined by the Board of Directors of Gold Bullion in its
Gold Bullion cannot guarantee that the Granada Gold Property will enter
into commercial production, that the proposed Granada Royalty Shares
will be issued or listed on any stock exchange or, if issued, the
amount of funds that Gold Bullion will raise from such issuance. The
issuance of the Granada Royalty Shares may be subject to shareholder
and regulatory approval. The Granada Royalty Shares have not been, and
will not be, 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
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural
resource company focusing on the exploration and development of its
Granada Property near Rouyn-Noranda, Québec, and its high grade Castle
Silver Mine in Gowganda, Ontario. Additional information on the
Company's Granada gold property is available by visiting the website at
www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated in such statements.
SOURCE: Gold Bullion Development Corp.
For further information:
Frank J. Basa, P. Eng., President and CEO at 1-514-397-4000.