🕐16.05.09 - 01:16 Uhr
Guyana Goldfields Inc. Announces $12,050,000 Non-brokered Private Placement
Guyana Goldfields Inc.
Announces $12,050,000 Non-brokered Private Placement
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES
DESCRIBED HEREIN
TORONTO, May 15 - Guyana Goldfields Inc.
(TSX:GUY) ("Guyana" or the
"Company") is pleased to announce a non-brokered private placement pursuant
to which Guyana proposes to issue up to 4,381,818 units ("Units") at a price
of $2.75 per Unit for aggregate gross proceeds of up to $12,050,000.
Each
Unit will consist of one common share and one-half of one common share
purchase warrant.
Each whole warrant shall be exercisable at any time for
one common share at a price of $4.00 per share for a period of three years
following closing.
The Company shall have the right to call the outstanding
warrants should the closing price of its common shares exceed $6.00 for 30
consecutive trading days after one year has elapsed from the closing date.
The International Finance Corporation (IFC), the member of the World Bank
Group focused on private sector investments in developing countries, and a
current shareholder in the Company, has agreed to purchase $5,000,000
(1,818,181 Units) of the private placement, subject to approval by its Board
of Directors.
Upon closing of the private placement the IFC will hold an
aggregate of 3,548,181 shares (5.6%) of Guyana.
Claude F.
Lemasson, P.Eng,
MBA, the recently appointed President and Chief Operating Officer of the
Company has agreed to purchase $1,000,000 (363,636 Units) of the private
placement.
Current and existing shareholders have agreed to purchase the
remaining $6,050,000 (2,200,000 units).
The net proceeds of the private placement will be used to complete the
previously announced Definitive Feasibility Study undertaken by AMEC,
Canada, to continue exploration of the Companys portfolio of gold
exploration properties in Guyana, South America and for general working
capital purposes.
The private placement remains subject to the approval of
the Toronto Stock Exchange.
The securities described herein have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States unless registered under the Act or unless an exemption from
registration is available.
About IFC:
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives.
IFC fosters sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments.
IFCs new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year.
For
more information, visit www.ifc.org.
About Guyana:
Guyana Goldfields Inc.
is a Canadian based mineral exploration company
primarily focused on the exploration and development of gold deposits in
Guyana, South America where the Company has operated since 1996.
The Company
is currently undertaking technical studies to advance and develop the Aurora
Project in Guyana.
As previously announced, (see press release dated December 8, 2008 at
www.sedar.com under the Guyana Goldfields Inc.
profile, "Guyana Goldfields Announces Increased Resource at Aurora 3.69
Million Ounces Measured and Indicated and 1.72 Million Ounces Inferred"),
the Aurora Gold Project contains a Measured resource of 8.08 million tonnes
@ 4.11 g/t Au., an Indicated resource of 21.06 million tonnes @ 3.87 g/t Au.
and an Inferred resource of 19.97 million tonnes @ 2.77 g/t Au.
Mr.
D.
K.
Mukhopadhyay, MAusIMM, Senior Mineral Resource Geologist of Micon
International Co.
Limited, reviewed and approved the technical data in his
capacity of a Qualified Person under National Instrument 43-101.
For further
details, please refer to the technical report of Guyana dated November 23,
2007 entitled "Technical Report: A Mineral Resource Estimate For the Rorys
Knoll, East Walcott and Aleck Hill Zones, Aurora Gold Property, Guyana"
available on SEDAR at www.sedar.com.
Forward Looking Statements - Certain information set forth in this news
release may contain forward-looking statements that involve substantial
known and unknown risks and uncertainties.
These forward-looking statements
are subject to numerous risks and uncertainties, certain of which are beyond
the control of Guyana, including, but not limited to the impact of general
economic conditions, industry conditions, volatility of commodity prices,
risks associated with the uncertainty of resource and reserve estimates,
currency fluctuations, dependence upon regulatory approvals, the
availability of future financing and exploration risk.
Readers are cautioned
that the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise
and, as such, undue reliance should not be placed on forward-looking
statements.
For further information:
Guyana Goldfields Inc.
Claude F.
Lemasson P.Eng, MBA
President and Chief Operating Officer
Tel: (416) 628-5936
Fax: (416) 628-5935
E-mail:
Website: www.guygold.com
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