Gold Bullion Development Corp. Announces Non-Brokered Private Placement by 24hgold

Mots clés associés : Canada | Dollar |

April 21, 2008

Gold Bullion - Press Release

Gold Bullion Development Corp. Announces Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(April 21, 2008) - Frank Basa, P. Eng., the President of Gold Bullion Development Corp. (TSX VENTURE:GBB) (the "Company") announces that it will effect a non-brokered private placement of a maximum of 3,442,970 "flowthrough" units at a price of $0.10 per unit, for maximum gross proceeds to the Company of $344,297, with MineralFields Group of Toronto, Ontario and one Officer of the Company. Each "flow-through" unit will consist of one "flow-through" common share and one common share purchase warrant. Each of the warrants will entitle the holder to purchase one additional common share of the Company at a price of $0.12 per share for a period of twelve months after the closing of the private placement, and at a price of $0.16 per share for a period of twelve months thereafter.

The units will be sold to "accredited investors" in Canada on a prospectus-exempt basis. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange. The closing of the private placement is expected to occur on or about April 22, 2008.

The proceeds from the private placement will be used by the Company for its exploration program on its properties located in the Province of Quebec.

In connection with the private placement, the Company will pay a finder's fee to Limited Market Dealer Inc. consisting of: (i) a cash commission representing 2% of the gross proceeds raised through Limited Market Dealer Inc. under the private placement; (ii) units, representing 3% of the number of units issued by the Company under the private placement through Limited Market Dealer Inc.; and (iii) a compensation option entitling Limited Market Dealer Inc. to purchase up to 10% of the number of "flowthrough" units sold under the private placement through Limited Market Dealer Inc. The compensation option will be exercisable at a price of $0.10 for a period of two years following the closing of the private placement. Each unit will be comprised of one common share of the Company and one common share purchase warrant. Each of the warrants will entitle the holder to purchase one additional common share of the Company at a price of $0.12 per share for a period of twelve months after the closing of the private placement, and at a price of $0.16 per share for a period of twelve months thereafter.

The securities issued in connection with the private placement will be subject to a four-month hold period under the policies of the TSX Venture Exchange and applicable securities legislation.

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, 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.. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(R), 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, with investors both within, and outside of MineralFields Group.

Gold Bullion's main asset is a 100-per-cent interest in the Granada Mine located near Rouyn-Noranda, Quebec. The Company has recently increased the total surface area from 71.32 hectares to 1095.59 hectares based on the positive results from processing a 30,000 tonne bulk sample last year. A former producer with extensive exploration undertaken over the years by previous exploration companies has a calculated (before National Instrument 43-101 done by A.C.A. Howe Ltd. in 1994) proven and probable resource of 109,931 tonnes at a grade of 3.72 grams/tonne gold for 13,150 ounces of gold and, 593,104 tonnes at grade of 3.41 grams/tonne gold for 65,030 ounces of gold to an average depth of 100 meters in Zones No 1 and 2 respectively. A potential also exists of some 1,677,812 tonnes at a grade of around 3.7 grams/tonne gold for 199,610 ounces of gold within the patented claim block. The resource estimate cited predates, and therefore does not conform to, the more stringent reporting requirements of NI 43-101 and should not be relied upon regarding the historical resource estimate according to those standards. The Company has engaged the services of Genivar to compile the past exploration data and to produce a revised 43-101 compliant resource. In addition a drill program may be undertaken to further define the resource. Genivar has also been retained to develop a 3D model of the resource and the best method to mine it by either open pit or underground. Mr. Frank J Basa, P.Eng. President, is the qualified person under the meaning of National Instrument 43-101 and has reviewed the data in this news release. The above-mentioned transactions are subject to all regulatory approval.

For more information on Gold Bullion Development Corp. (TSX VENTURE:GBB), visit our website http://www.goldbulliondevelopmentcorp.com/en/.

ON BEHALF OF THE BOARD OF DIRECTORS

Frank J. Basa, P.Eng., President

This press release has been prepared by management. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:
Gold Bullion Development Corp.
Frank J. Basa, P.Eng.
President & Chairman
(604) 838-3376
Fax: (604) 648-9307
Email: info@Goldbulliondevelopmentcorp.com
Website: www.goldbulliondevelopmentcorp.com/en/

or

AGORACOM Investor Relations
Email: gbb@Agoracom.com
Website: www.agoracom.com/IR/goldbullion

FEATURED LINKS

Gold Bullion Web Site

Gold Bullion IR HUB

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