VANCOUVER, Nov. 7, 2014 /CNW/ - Garibaldi Resources Corp. (TSX.V: GGI) (the "Company" or "Garibaldi") is pleased to announce that it has arranged a non-brokered private placement of up to 5,000,000 units of the Company at a price of $0.20 per unit (see details below) for total gross proceeds of up to $1 million. Proceeds of the financing will be used to immediately expand current drilling and exploration programs following up on a growing high-grade discovery at its 100%-owned Rodadero North Silver-Gold Project in central Sonora State, Mexico, and for general working capital purposes.
"We effectively leveraged our previous discovery in Mexico (the Temoris option) to avoid any dilution to our share structure since 2009," commented Steve Regoci, Garibaldi President and CEO. "Our management, geological and advisory board teams now see Rodadero as an even greater opportunity than Temoris given the scale of the project, the high grades returned to date from drilling and sampling, and the near-surface nature of the silver, gold and base metal mineralization.
"We believe we're seeing the emergence of a new mineral camp in this part of Sonora State which commands a rapid increase in the pace of drilling and exploration.
"As we continue to get very encouraging signs from ongoing drilling at Silver Eagle, where discovery hole SE-14-01 returned an exceptional and shallow 7-meter intercept grading 2,010 g/t Ag, we've also completed plans for 9 proposed drill holes at Tarichi, 2.5 km to the southeast where the exploration target is a near-surface high-grade silver and gold system. Tarichi is the second of 11 high priority areas outlined at Rodadero North over a 10-km long, 5-km wide corridor. Hyperspectral 'hot spots' and extensive mapping and sampling results suggest a possible structural linkage among at least some of these 11 separate targets that are each highly mineralized at surface."
True width of the bonanza grade discovery in SE-14-01 is estimated to be approximately 80% of the reported interval (see October 23 news release for latest drilling and exploration highlights from Rodadero North).
Private Placement Details
The proposed private placement will consist of an offering of units of the Company's securities at a price of $0.20 per unit. Each unit will contain one common share in the capital of the Company and one non-transferable share purchase warrant with each warrant entitling the holder to acquire one additional common share of the Company at a price of $0.30 for a period of two years. Finders' fees in cash and/or securities will be payable with respect to the private placement.
The private placement is subject to acceptance for filing by the TSX Venture Exchange.
Corporate Fact Sheet
To view the updated Fact Sheet for Garibaldi Resources, please visit the following URL:
Dr. Craig Gibson, Certified Professional Geologist and a director of Garibaldi, is a non-arms-length Qualified Person for the Company's Mexico projects and the direct manager of the technical programs operated under contract by Prospeccion Y Desorrollo Minera del Norte (ProDeMin). Dr. Gibson has reviewed this news release and approved the content thereof.
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia
We seek safe harbor.
GARIBALDI RESOURCES CORP.
Per: "Steve Regoci"
Steve Regoci, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.
SOURCE: Garibaldi Resources Corp.
For further information: Garibaldi Resources Corp., 1150 - 409 Granville Street, Vancouver, BC V6C 1T2, Telephone: (604) 488-8851, Web site: GaribaldiResources.com