VANCOUVER, Sept. 27, 2013 /CNW/ - GREAT NORTHERN GOLD EXPLORATION CORPORATION (TSX-V: GGE) (the "Company") announces an increase to the non-brokered common share private placement from $250,000 to $750,000. The Company will issue up to 15,000,000 common shares at a purchase price of $0.05 to raise gross proceeds of up to $750,000 (the "Private Placement").
The net proceeds from the Private Placement will be used by the Company to fund the expenses associated with the business combination with the specialty finance and service company previously announced on July 11, 2013 (the "Transaction"). The expenses associated with the Transaction include customary due diligence, legal, accounting, sponsorship, corporate finance fees, filing and other transactional fees. Any remaining funds following the close of the Transaction will be utilized as working capital by the resulting issuer.
The Company will pay a finder's fee in connection with the Private Placement of 10% cash and 10% common share purchase warrants at a warrant exercise price of $0.05 per common share in the share capital of the Company, exercisable over a period of three years from the date of closing. The Private Placement is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval by the TSX Venture Exchange. The Transaction remains subject to a number of material conditions, including due diligence, regulatory approval and the negotiation and execution of a definitive agreement. As such, there can be no assurance that the Transaction will complete. The shares of the Company will remain halted. Specific details of the Transaction will be disclosed when the conditions have been satisfied or waived.
All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
ON BEHALF OF THE BOARD OF DIRECTORS
Kim Oishi, CEO
STATEMENTS IN THIS PRESS RELEASE REGARDING THE COMPANY'S BUSINESS WHICH ARE NOT HISTORICAL FACTS ARE "FORWARD-LOOKING STATEMENTS" THAT INVOLVE RISKS AND UNCERTAINTIES, SUCH AS ESTIMATES AND STATEMENTS THAT DESCRIBE THE COMPANY'S FUTURE PLANS, OBJECTIVES OR GOALS, INCLUDING WORDS TO THE EFFECT THAT THE COMPANY OR MANAGEMENT EXPECTS A STATED CONDITION OR RESULT TO OCCUR. SINCE FORWARD-LOOKING STATEMENTS ADDRESS FUTURE EVENTS AND CONDITIONS, BY THEIR VERY NATURE, THEY INVOLVE INHERENT RISKS AND UNCERTAINTIES. ACTUAL RESULTS IN EACH CASE COULD DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED IN SUCH STATEMENTS. THE COMPANY DOES NOT ASSUME ANY OBLIGATION TO UPDATE OR REVISE EVENTS OR CIRCUMSTANCES UNLESS REQUIRED BY APPLICABLE SECURITIES LAWS.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Neither the 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: Great Northern Gold Exploration Corporation
For further information:
Kim Oishi, CEO
Great Northern Gold Exploration Corporation
Toronto : (416) 804 9228
Vancouver : (778) 997 6228