GBN: TSX Venture Exchange | OTCQX: GBRIF
SASKATOON, May 2, 2013 /CNW/ - Golden Band Resources Inc. (Golden Band
or Company) (TSXV: GBN; OTCQX: GBRIF) announces that further to the
news releases dated August 3, 2012 and February 26, 2013, the Second
Tranche of the Term Debt Facility in the amount of $3.5 million has
been advanced to the Company. With the advance of the $3.5 million, $16
million of the $20 million debt facility has now been utilized. The
funds will be used to fund mining operations, mine and mill
refurbishment and general working capital.
The Lender, Procon Resources Inc., agreed to waive certain funding
conditions, including without limitation the Second Tranche operational
milestones (see news release of August 3, 2012). Two directors of the
Lender are also directors of the Company.
Further to the Company's news release of March 27, 2013 announcing
operational changes, the Company also announces that it has terminated
the position of Vice President, Operations in an effort to streamline
operations. The Company thanks Mr. Conklin for his service to Golden
Band in this role and wishes him every success in future endeavours.
The Company also reports that a legal claim has been issued against the
Company by Acer Capital Group Inc. of California with respect to
outstanding advisory fees. The claim in the amount of approximately
$324,000 is currently under review by management who will determine an
appropriate course of action. At this stage, it is not possible to
provide an evaluation as to the outcome of the claim.
About Golden Band
Golden Band Resources is a gold producer operating in the La Ronge gold
belt in northern Saskatchewan and is listed on the TSX Venture Exchange
in Canada under the symbol GBN and traded in the United States on the
OTCQX under the symbol GBRIF. The Company has two producing mines, Roy
Lloyd and Komis. Commercial production was declared on April 1, 2011.
On February 26, 2013, the Company announced a temporary halt of mining
at the Komis deposit to free up equipment and personnel for the
construction of road access to the Golden Heart deposit. Operations at
the Company's Roy Lloyd mine continue and Jolu Mill operations will be
suspended until mill capacity can be improved. The Company has been
actively exploring the La Ronge Gold Belt since 1994 and has assembled
a land package of 870 km2, including 13 known gold deposits and four
former producing mines, being Jolu, Decade, Star Lake and Komis. The
Company plans to undertake aggressive drill programs throughout the La
Ronge Gold Project with the goal of significantly expanding the
existing NI 43-101 gold resources that have been identified to date.
On behalf of the Board of Directors of Golden Band Resources Inc.,
Paul Saxton, Chairman and CEO
Contact: 306 385 7144
Caution Regarding Forward-Looking Information and Statements
This news release includes certain forward-looking statements or
information. All statements other than statements of historical fact
included in this release, including, without limitation, statements
regarding the restructuring of operations, status of legal disputes,
estimates of production, costs of production, the sufficiency and
availability of capital and financing and other future plans,
objectives or expectations of Golden Band Resources Inc. (Company) 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. Important factors
that could cause actual results to differ materially from the Company's
plans or expectations include risks relating to the actual results of
operations, legal outcomes, current exploration activities, fluctuating
gold prices, possibility of equipment breakdowns and delays, cost
overruns, availability of capital and financing, general economic,
market or business conditions, regulatory changes, timeliness of
government or regulatory approvals and other risks detailed herein and
from time to time in the filings made by the Company.
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:
Jim Gee, Business Services Manager
Office: 306 955 0787