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Grizzly Discoveries Inc. ("Grizzly" or the "Corporation")
(TSX VENTURE:GZD - News; FRANKFURT:G6H - News) announces that on
December 30, 2010, it closed on a non-brokered private placement offering
(the "Offering") of an aggregate of 613,334 units
("Units") at a price of $0.30 per Unit and an aggregate of
2,106,000 flow-through units ("FT Units") at a price of $0.35 per
FT Unit, for gross proceeds of $921,100. Each Unit consisted of one common
share of the Corporation ("Common Share") and one non-transferable
Common Share purchase warrant ("Warrant") entitling the holder to
acquire one additional Common Share at a price of $0.60. Each FT Unit
consisted of one Common Share issued as a "flow-through share"
pursuant to the Income Tax Act (Canada) and one non-transferable Common Share
purchase warrant ("FT Unit Warrant") entitling the holder to
acquire one additional Common Share at a price of $0.65.
In
connection with the sale of 35,000 FT Units, the Corporation paid a cash
finder's fee of $980, representing 8% of the proceeds thereon, and issued a
non-transferable option ("Finders Option") to a registered dealer
to acquire up to 3,500 additional Units, representing 10% of the FT Units
sold, at a price of $0.35 per Unit until December 30, 2012.
In
connection with the sale of 2,000,000 FT Units to the MineralFields Group,
the Corporation paid a cash finders fee of $35,000, representing 5% of the
proceeds thereon, and a due diligence fee of $21,000. The Corporation also
issued a Finders Option to acquire up to 200,000 additional Units,
representing 10% of the FT Units sold to the MineralFields Group, at a price
of $0.35 per Unit until December 30, 2012.
The
FT Unit Warrants and the Warrants, including Warrants issued pursuant to the
exercise of the Finders Options, expire on the earlier of: (a) 30 days
following the issuance of a news release by the Corporation that the trading
price of the Common Shares on the TSX Venture Exchange is at or greater than
$0.80 per Common Share for 10 consecutive trading days; and (b) December 30,
2012.
The
Units and FT Units were sold to qualified purchasers in reliance upon
exemptions from the prospectus and registration requirements of applicable
securities legislation. The securities comprising the Units, the FT Units,
the Common Shares issuable upon exercise of the Warrants and the FT Unit
Warrants, and the Units issuable upon exercise of the Finders' Options are
subject to a restricted period ending May 1, 2011.
The
Corporation intends to use the proceeds from the sale of the FT Units to
incur qualifying expenditures on the Corporations's Greenwood Gold Project in
southern British Columbia, and the proceeds from the sale of the Units on the
Greenwood Gold Project and general working capital.
In
relation to the sale of 2,000,000 FT Units to the MineralFields Group, Brian
Testo, President and CEO of Grizzly, stated "We are very pleased to be
continuing our relationship with MineralFields Group with this, the sixth
financing of Grizzly in which the MineralFields Group has participated. This
is an important milestone in the growth of Grizzly and we look forward to
working with MineralFields Group as we continue to advance the Greenwood Gold
Project."
About
MineralFields, Pathway, and First Canadian Securities®
MineralFields
Group (a division of Pathway Asset Management), based in Toronto, Vancouver,
Montreal and Calgary, is a mining fund with significant assets under
administration that offers its tax-advantaged super flow-through limited
partnerships to investors throughout Canada as well as hard-dollar resource
limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds (including the Pathway Multi Series
Funds Inc. corporate-class mutual fund series). Information about
MineralFields Group is available at www.mineralfields.com.
First Canadian Securities® (a division of Limited Market Dealer Inc.) is
active in leading resource financings (both flow-through and hard dollar PIPE
financings) on competitive, effective and service-friendly terms, and offers
investment banking, mergers and acquisitions, and mining industry consulting,
services to resource companies. MineralFields and Pathway have financed
several hundred mining and oil and gas exploration companies to date through
First Canadian Securities®
About
Grizzly Discoveries Inc.
Grizzly
is an aggressive Canadian exploration company focused on exploring for world
class gold and base metal deposits in British Columbia, and for diamonds and
industrial minerals in Alberta. In British Columbia, Grizzly currently has
four precious-base metal properties totaling over 235,000 acres. It currently
holds more than 600,000 acres in diamond properties which host diamondiferous
kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta. Grizzly
has also acquired metallic and industrial mineral permits for potash totaling
more than 1.8 million acres along the Saskatchewan-Alberta border.
Grizzly
trades on the TSX Venture Exchange under the symbol GZD, with 34,129,636
Common Shares issued and outstanding.
All
2010 field and office exploration programs are conducted under the
supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX
Geoscience Ltd. and a Qualified Person under National Instrument 43-101.
On
behalf of the Board
Grizzly
Discoveries Inc.
Brian
Testo, President
For
further information, please visit our website at http://www.grizzlydiscoveries.com
or contact Investor Relations.
This
news release contains certain forward-looking statements. All statements,
other than statements of historical fact, included herein, including, without
limitation, statements regarding potential mineralization, resources and
reserves estimates, exploration results, exploration and development results
and the future plans and objectives of Grizzly 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.
Readers are cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific,
that contribute to the possibility that the predictions, forecasts,
projections and various future events will not occur. Grizzly undertakes no
obligation to update publicly or otherwise revise any forward-looking
statement whether as a result of new information, future events or other
factors which affect such statement, except as required by law.
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
Contact:
Nancy Massicotte
IR PRO COMMUNICATIONS
604-507-3377 or Toll Free: 1-866-503-3377
ir@grizzlydiscoveries.com
www.irprocommunications.com
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