SASKATOON, Sept. 19 /CNW/ - Golden Band Resources Inc. (GBN:TSXV) (the
"Company") announced today that it will conduct a non-brokered private
placement of 2,750,000 units ("Units") at a price of $0.55 per Unit for gross
proceeds of $1,512,500. Each Unit consists of one flow-through common share
and one non-flow through warrant ("Warrant"). Each Warrant entitles the holder
to purchase an additional non-flow through common share of the Company for a
period of 24 months at a price of $0.65 per share for the first 12 months and
thereafter at a price of $0.75 per share for the second 12 months. In the
event that the Company's shares trade at a price of $0.90 or more for at least
15 consecutive days, then the Company will earn the right to shorten the
exercise period of the Warrant to 30 days from the date written notice of such
adjustment is delivered to the holder of the Warrant. The gross proceeds of
the sale of the Units wil be used to fund exploration expenses qualifying as
Canadian Exploration Expenses ("CEE") as defined under the Income Tax Act
(Canada) (the "Act") on the Company's Bingo deposit.
Golden Band will pay a cash fee of 6% of the gross proceeds raised by
NovaDX Ventures Corp. (the "Finder"), plus compensation warrants to purchase
Units equal to 8% of the number of Units sold by the Finder. The compensation
warrants will expire 12 months after the closing of the offering. The exercise
price of the compensation warrants wil be $0.55 per Unit.
The shares included in the Units are to be qualified as "flow-through"
shares under the Act. 100% of the subscription amount(s) for the shares will
be renounced by the Company to the subscribers as CEE.
This financing is subject to the normal regulatory approval of the TSX
Venture Exchange. The securities offered hereby will be subject to a
four-month plus one-day hold period from the closing date in accordance with
applicable securities laws.
On behalf of the Board of Directors of Golden Band Resources Inc.,
Rodney G. Orr, P.Geo., President & CEO
All of Golden Band's exploration programs and pertinent disclosure of a
scientific nature are prepared and/or designed and carried out under the
supervision of Frank Hrdy, P.Geo., Golden Band's VP Exploration, who serves as
the qualified person (QP) under the definitions of National Instrument 43-101.
All of Golden Band's development-related programs and pertinent disclosure of
a development nature are prepared and/or designed and carried out under the
supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations, who
serves as the qualified person (QP) under the definitions of National
Cautionary Statements on Forward-Looking Information: The statements made
in this News Release may contain certain forward-looking information. Actual
results may differ materially from those currently anticipated in such
statements. Certain risk factors may also affect the actual results achieved
by the Company.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Please note the new toll free phone number for
Golden Band is 1-866-501-5651; Golden Band Resources Inc.: Rodney Orr,
President, (306) 955-0787 extension 13, firstname.lastname@example.org;
Motivia Communications: Roger Francis, (306) 242-0694, toll free: