/Not for distribution in the United States or to U.S. newswire services/
Guyana Goldfields Inc. Announces Closing of Private Placement to Raise $31,693,010
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/
TORONTO, April 25, 2012 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (TSX: GUY) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 10,891,069 common shares ("Shares") at a price of C$2.91 per Share to raise aggregate gross proceeds of approximately C$31,693,010.
The Baupost Group LLC ("Baupost"), a Boston, Massachusetts based institutional investor, purchased 7,891,069 Shares in the Offering for approximately $22,963,010 in aggregate proceeds. Upon the closing of the Offering, Baupost holds approximately 18.5% of the outstanding Shares, and has the right to appoint an independent director to the Company's Board of Directors.
In addition, funds managed by Franklin Advisors, Inc. ("Franklin") purchased an aggregate of 2,500,000 Shares in the Offering, and Mr. Patrick Sheridan who serves as the Chief Executive Officer and interim President and Chief Operating Officer of Guyana purchased an aggregate of 500,000 Shares in the Offering. Following the closing, Franklin and Mr. Sheridan hold approximately 11.2% and 5.8% of all of the issued and outstanding Shares, respectively.