VANCOUVER, BRITISH COLUMN--(Marketwired - May 4, 2015) - Gray Rock Resources Ltd. (the "Company") (TSX VENTURE:GRK) is pleased to announce that it has arranged a Non-Brokered Private Placement of up to 575,000 units at a price of $0.02 per unit, each unit consisting of one common share and one non-transferrable share purchase warrant. Each warrant will entitle the investor to purchase one additional common share with a term of two (2) years at an exercise price of $0.05.
No commissions or fees are payable in connection with this financing. The net proceeds of this Offering will be used to maintain the Company's existing operations and general working capital requirements.
The financing is subject to the acceptance of the TSX Venture Exchange. The securities issued by the Company in connection with this financing are subject to a 4-month "hold period" as prescribed by the policies of the TSX Venture Exchange and applicable securities laws.
Silver Stream 2 Property
The Company has entered into a mining lease agreement for the Silver Stream 2 property with Saxifrage Geological Services Ltd. ("Saxifrage"). In accordance with the terms of the agreement, Saxifrage has agreed to pay the Company an annual rental of $10,000 for a term of seven years, with the first payment due on December 12, 2015. In addition, the Company granted Saxifrage an option to purchase the property for $500,000 payable at any time during the term of the agreement, subject to a 5% Net Smelter Returns Royalty on metals and a 5% Gross Overriding Royalty on any jade production. Any future royalty payments due to the Company from Saxifrage after the exercise of option, shall be reduced by $500,000.
Jade Mining in British Columbia
The Bridge River / Lillooet area around Gray Rock's Silver Stream property has a rich history of jade mining. From 1957 until the end of the 1960s, more rough jade was produced in the Lillooet area than in the rest of the world combined. Jade is British Columbia's official gemstone, and to this day, Lillooet is known as the jade mining capital of British Columbia. In 2012, the city of Lillooet completed what is known as the " Jade Trail" along it's main street consisting of 30 jade stone carvings to profile the town's jade mining history. The world jade market is estimated at 300 tonnes per year, with three quarters of this originating in B.C. The price of raw jade varies from less than $10 to $100 per kilogram depending on quality and quantity.
Corporate Update
The Company is pleased to announce the appointment of Ms. Dorothy Chin as Corporate Secretary of the Company to replace Ms. Pamela Saulnier, who has resigned. The Company would like to take this opportunity to thank Ms. Saulnier for her contributions to the Company throughout her years of service.
ON BEHALF OF THE BOARD
David Wolfin, President & CEO
Neither 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. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.