Golden Band Resources Inc. (GBN: TSXV) announced today that it will complete a non-brokered private placement of up to 7,500,000 units at a price of $0.20 per Unit for gross proceeds of up to $1,500,000.
Each Unit shall consist of one common share in the Company and one common share purchase warrant of the Company exercisable for a period of 12 months from closing. Each Warrant shall be exercisable into one common share of the Company at $0.28 per share.
Commencing on the date that is four months and one day after the closing date, if the closing price of the Company's common shares on the TSX Venture Exchange, or any other stock exchange on which the Company's common shares are then listed, is at a price equal to or greater than $0.40 for a period of 15 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants that the Warrants will expire on the date that is not less than 30 days from the date notice is provided by the Company to the Warrant holders.
The proceeds of the sale of the Units will be used for the Company's development-related work in connection with its plans to start gold production using the Company's Jolu mill, and for general working capital.
Golden Band will pay a cash fee of up to 5% of the gross proceeds of these private placements raised by finders and issue non-transferable warrants equal to 5% of the Units sold pursuant to the efforts of finders. Each Finder's Warrant will be exercisable to acquire one common share at $0.28 expiring 12 months after the closing date. Certain directors and officers of the Company are expected to participate in the offering on the terms set forth above and such participation has been approved by the independent directors of the Company.
The Company is relying upon an exemption from the related party requirements of OSC Rule 61-501. 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. The Company anticipates closing of the Offering as soon as practicable subject to receipt of all necessary regulatory and TSX Venture Exchange ("TSXV") approvals. -- www.cnxmarketlink.com
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