TSX: GGL.V $0.025 +0.000 +0.000% vol. 60,000

Press Release

Private Placement to raise up to $1,500,000
August 04, 2011
download PDF (19.57421875KB) »

VANCOUVER, British Columbia, Canada – Mr. Raymond Hrkac, President, GGL Resources Corp. (TSX-V: GGL) (“GGL”) is pleased to announce that the Company has negotiated a private placement with Emerick Resources Corp. (“Emerick”) to raise $1,000,000 by way of issue of 20 million units at a price of $0.05 per unit.  Each unit will comprise of one non flow-through common share and one non-transferable common share purchase warrant.  Each warrant will entitle the holder to purchase one non flow-through common share for three years from the closing date at $0.10 per share.

                                                                                                                                                          In addition, GGL intends to raise up to an additional $500,000 by way of a non-brokered private placement comprising a combination of flow-through and non flow-through units at a price of $0.05 per unit.  Each flow-through unit will consist of one flow-through common share and one non-transferable non flow-through warrant.  Each warrant will entitle the holder to purchase one non flow-through common share for three years from the closing date at $0.10 per share.  Each non flow-through unit will comprise of one non flow-through common share and one non-transferable common share purchase warrant.  Each warrant will entitle the holder to purchase one non flow-through common share for three years from the closing date at $0.10 per share. 

The proceeds from the sale of flow-through common shares will be used to incur Canadian Exploration Expense (“CEE”), as defined in the Income Tax Act (Canada).  GGL will renounce such CEE to the subscribers effective for the 2011 tax year. 

The $1 million financing is being done in conjunction with a property option agreement whereby the Company has granted Emerick the option to acquire a 75% interest in the Company’s Providence Greenstone Belt (“PGB”) group of claims.  The option agreement and the private placement are subject to TSX Venture Exchange approval. 

To complete its option Emerick must: 

1.             Invest $1 million in GGL by way of a private placement; 

2.             Incur expenditures of $10 million on the PGB claims over 5 years, of these expenditures not less than $600,000 will be a commitment to carry out an agreed program in 2011 and 2012 designed to advance as many targets as possible to a drilling stage and to cover the costs of legal surveys required to bring certain claims to lease in 2011 and 2012. Upon Emerick having earned the 75% interest in the PGB, the parties will form a joint venture with standard JV and dilution provisions. 

In addition while the option agreement is in effect and except with respect to the assets of GGL that are subject to prior agreements with Rio Tinto Exploration Canada Inc. and De Beers Canada Inc., which provide for mutual right to first offer, Emerick will have a right of first offer with respect to all assets of GGL outside the PGB. 

Of the $1 million raised from the financing with Emerick $500,000 of the proceeds will be spent by GGL on a work program on the McConnell Creek Property and a maximum of $250,000 towards payment of current accounts payable with the balance allocated for ongoing working capital. 

Said Mr. Hrkac, President and CEO " We are extremely pleased to have reached this agreement with Emerick as it provides the Company with necessary working capital to explore its other resource properties and will bring a substantial work program to the PGB claims, where the Company has retained a significant working interest.  We look forward to working with Emerick to advance this agreement."    

GGL RESOURCES CORP. 

“Raymond A. Hrkac”

 Raymond A. Hrkac

President & CEO 

For further information, email: info@gglresourcescorp.com or visit our web site at www.gglresourcescorp.com.  

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. 

Forward-Looking Information: This news release contains “forward-looking statements” and the cautions regarding such statements apply.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered in the United States Securities Act of 1933, as amended (the “US Securities Act”) or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable securities laws or an exemption from such registration is available.

 
Back to top