Guyana Goldfields Inc. Announces Closing of Second Tranche of Offering
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
TORONTO, June 10 - Guyana Goldfields Inc. ("Guyana" or the "Company") (TSX:GUY) is pleased to announce that it has closed the second tranche of its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 1,727,273 units ("Units") at a price of $2.75 per Unit to raise aggregate gross proceeds of approximately $4,750,000. The aggregate gross proceeds of the Offering are $17,050,000. Each Unit consists of one common share of Guyana and one-half of one common share purchase warrant, each whole such warrant (a "Warrant") entitling the holder to acquire one additional common share of Guyana at a price of $4.00 for a period of three years from closing (the "Warrant Term"). If, however, following June 3, 2010, the closing price of Guyana's common shares exceeds $6.00 for 30 consecutive trading days, then the Warrant Term shall be automatically reduced and the Warrants will expire on the date that is 60 days following either the issuance of a press release or the provision to the holders of the Warrants of written notice announcing the reduced Warrant Term, all in accordance with the terms of the certificates representing the Warrants.
Claude Lemasson, the President and Chief Operating Officer of the Company, purchased an aggregate of 363,639 Units in the Offering.
The securities issued in connection with the second tranche of the Offering have a hold period expiring on October 10, 2009. The net proceeds of the Offering will be used to complete the previously announced Definitive Feasibility Study undertaken by AMEC, Canada, to continue exploration of the Company's portfolio of gold exploration properties in Guyana, South America and for general working capital purposes. The Offering remains subject to the approval of the Toronto Stock Exchange. The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
About Guyana:
Guyana Goldfields Inc. is a Canadian based mineral exploration company primarily focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Company is currently undertaking technical studies to advance and develop the Aurora Project in Guyana. As previously announced, (see press release dated December 8, 2008 at www.sedar.com under the Guyana Goldfields Inc. profile, "Guyana Goldfields Announces Increased Resource at Aurora 3.69 Million Ounces Measured and Indicated and 1.72 Million Ounces Inferred"), the Aurora Gold Project contains a Measured resource of 8.08 million tonnes @ 4.11 g/t Au., an Indicated resource of 21.06 million tonnes @ 3.87 g/t Au. and an Inferred resource of 19.97 million tonnes @ 2.77 g/t Au. Mr. D. K. Mukhopadhyay, MAusIMM, Senior Mineral Resource Geologist of Micon International Co. Limited, reviewed and approved the technical data in his capacity of a Qualified Person under National Instrument 43-101. For further details, please refer to the technical report of Guyana dated November 23, 2007 entitled "Technical Report: A Mineral Resource Estimate For the Rory's Knoll, East Walcott and Aleck Hill Zones, Aurora Gold Property, Guyana" available on SEDAR at www.sedar.com.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Guyana, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
For further information:
Guyana Goldfields Inc.
Claude F. Lemasson, P.Eng, MBA
President and Chief Operating Officer
Tel: (416) 628-5936
Fax: (416) 628-5935
E-mail: clemasson@guygold.com
Website: www.guygold.com