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: