VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.
Bayfield Ventures Corp. (News - Market indicators) (FRANKFURT:B4N) (the "Company") is pleased to announce it has entered into a private placement financing arrangement (the "Flow-Through Offering"), led by Octagon Capital Corporation ("Octagon") on an agency basis, for aggregate proceeds of up to $2,500,000 of flow-through shares (the "FT Shares") at a price of $1.00 per FT Share. There will be no warrants attached to the FT Shares.
The proceeds of the Flow-Through Offering will be used to incur Canadian Exploration Expenditures on the continued exploration of the Company's Rainy River gold project in NW Ontario prior to December 31, 2012.
Rainy River gold properties claims map:
http://www.bayfieldventures.com/i/pdf/BYVRRArea.pdf
In addition, Bayfield also announces a further private placement financing arrangement (the "Non Flow-Through Offering"), led by Octagon on an agency basis, for aggregate proceeds of up to $2,500,000 of non flow-through units (the "NFT Unit") at a price of $0.80 per NFT Unit. Each NFT Unit will consist of one common share and one-half of one common share purchase warrant (the "Warrant"). Each whole Warrant is exercisable by the holder to acquire one common share of the Company for a period of 36 months from the closing of the Non Flow-Through Offering at an exercise price of $1.20 per common share. Octagon also has an option to increase the size of the Non Flow-Through Offering by up to 468,750 NFT Units for a period of up to 48 hours prior to the closing date of the Non Flow-Through Offering.
Octagon will receive a commission fee of 7% in cash of the aggregate gross proceeds of the Flow-Through and Non Flow-Through Offering and 10% agent's warrants exercisable for a period of 36 months from the closing date of the private placement at an exercise price of $1.00 per common share.
The proceeds of the Non Flow-Through Offering will be used to fund Bayfield's ongoing Rainy River mineral project located in Ontario and for general working capital.
The completion of the private placement is subject to approval by the TSX Venture Exchange and other regulatory agencies. Closing is anticipated on or about April 7, 2011.
About Bayfield Ventures Corp.:
Bayfield Ventures Corp. is exploring for gold in the Rainy River District of north-western Ontario.
On February 15th, Bayfield Ventures was recognized as a TSX Venture 50® company in 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license. The TSX Venture 50® are the top 10 companies listed on the TSX Venture Exchange, in each of five major industry sectors – mining, oil & gas, technology & life sciences, diversified industries and clean technology – based on a ranking formula with equal weighting given to return on investment, market cap growth, trading volume and analyst coverage. All data was as of December 31, 2010.
The Company has approximately 54 million shares outstanding and over $6 million currently in its treasury.
For further information on Bayfield Ventures Corp. (News - Market indicators), visit the Company's web site at www.bayfieldventures.com.
For drilling updates, follow Bayfield on Facebook: http://www.facebook.com/group.php?gid=56518514278&ref=mf#!/group.php?gid=56518514278&v=wall
ON BEHALF OF THE BOARD OF DIRECTORS
James G. Pettit, Chairman and CEO
This news release may contain certain "Forward-Looking Statements" that may involve a number of 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. For a more detailed discussion of such risks and other factors, refer to the Company's filings with Canadian Securities regulators available on www.sedar.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.