Uragold Bay Resources Inc. (TSX VENTURE:UBR - News), has entered into an
agreement with Jones, Gable & Company Limited ("Jones, Gable")
in respect of a brokered private placement financing consisting of up to
1,250 flow-through share units (the "Units") at a purchase price of
$1,000 per Unit to raise total gross proceeds of up to $1,250,000 (the
"Offering") on a commercially reasonable effort agency basis for
accredited investors only.
The Units will consist of fifteen thousand (15,000)
flow-through common shares at a price of $0.05 per share, five thousand
(5,000) common shares at a price of $0.05 per share and twenty thousand
(20,000) common share purchase warrants. Each whole warrant will entitle the
holder to purchase one additional common share in the capital of the Company
for a period of twenty four months from the date of closing of the placement,
at a purchase price of $0.10 per share.
Proceeds of the flow-through shares will be used to
incur general exploration expenses in Quebec. The expenses will constitute
Canadian exploration expenses and flow-through mining expenditures (as
defined in the Income Tax Act (Canada), which can be renounced to purchasers
for the 2010 taxation year.
Certain directors, officers and insiders of the
Company may participate in the Offering. The securities issued will be subject
to a hold period of four months and one day.
Proceeds of the placement will also be used for
general working capital purposes and the development of the Company's Quebec
based properties.
The placement will be subject to approval by the TSX
Venture Exchange.
Bernard Tourillon, UBR Chairman and CEO comments:
"This new broker private placement combined with the previously closed
non-broker placement will give the Corporation the required liquidity for the
aggressive development of the Corporation's prime properties."
About Uragold Bay Resources Inc.
Uragold Bay Resources is a junior exploration
company trading on the TSX Venture Exchange under the symbol UBR. Uragold is
a top claims holder in Southern Quebec's Appalachian belt. The properties
benefit from extensive historical exploration work and from well-established
infrastructure thereby helping to reduce exploration risks. Uragold's
business model focuses on developing a series of potential small scale
low-cost gold mining operations including the Beauce Placer, the Calway, the
Riviere du Loup, Riviere Bergeron, and Grande Coulee for their potential in
generating cash flow while simultaneously exploring core properties that hold
the potential for the discovery of blue sky gold deposits like the MacDonald
project.
The recent rise in Uranium prices combined with the
discovery of Rare Earth Element deposits in the area close to Uskawanis,
allows the Corporation to explore once again the potential of our James Bay
projects.
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. This news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address future
events and conditions and therefore, involve inherent risks and
uncertainties. Actual results may differ materially from those currently
anticipated in such statements.
Contact:
Bernard J. Tourillon
Uragold Bay Resources Inc.
Chairman and CEO
514-846-3271
Toll-free 1-888-666-3431
|