Press release from Marketwire
Golden Reign Resources Ltd.: Oversubscribed Private Placement Closed
Tuesday, June 04, 2013
Golden Reign Resources Ltd.: Oversubscribed Private Placement Closed12:46 EDT Tuesday, June 04, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 4, 2013) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR), is pleased to announce that it has closed a non-brokered private placement of 15,797,830 units at a price of $0.15 per unit to raise gross proceeds of approximately $2.37 million. Each unit is comprised of one common share and one share purchase warrant which entitles the holder to purchase an additional common share a price of $0.25 for a period of two years. In connection with the offering, the Company has agreed to pay finder's fees of $45,645 cash and 242,800 warrants priced at $0.25 per share exercisable for a period of two years. The common shares issued pursuant to this private placement are subject to a four month hold period. The placement and payment of the finder's fees have been accepted by the TSX Venture Exchange.
Proceeds of the placement will be applied to costs related to the San Albino-Murra Gold Property in Nicaragua and for general working capital.
Golden Reign is currently drilling at the San Albino Gold Deposit, within its flagship San Albino-Murra Gold Property. Additionally, the Company plans to drill 4 highly prospective zones within the Las Conchitas area, located approximately 1 kilometre to the south. Together, the San Albino Gold Deposit and the Las Conchitas area represent only 8 square kilometres of the Company's 138 square kilometre land package.
Insider Participation in Offering
Kim Evans, John Conlon, Len Dennis, Bryce Porter and William Meyer participated in the private placement by subscribing for an aggregate of 2,058,332 units for aggregate proceeds of $308,750. The participation by the directors is considered a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of the units issued to, nor the consideration paid by, the related parties exceeded 25% of the Company's market capitalization.
On behalf of the Board,
Kim Evans, CGA, Director & CFO
For additional information please visit our website at www.goldenreign.com∩╗┐ and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
FOR FURTHER INFORMATION PLEASE CONTACT:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.Contact Information:
Golden Reign Resources Ltd.
Kim Evans, CGA
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)