ANNOUNCES PRIVATE PLACEMENT
Mr. Frank Basa reports
GOLD BULLION ANNOUNCES PRIVATE PLACEMENT
Gold Bullion Development Corp. has arranged a non-brokered private placement financing consisting of up to 10 million units at a purchase price of 15 cents per unit to raise gross proceeds of up to $1.5-million. Each unit will consist of one flow-through common share in the capital of the company and one-half of a non-transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the company for a period of 12 months from the date of issuance, at a purchase price of 17.5 cents per share.
The company will pay a cash commission in connection with the private placement, in an amount equal to 8 per cent of the gross subscription proceeds realized from the sale of units, and, in addition, will issue non-transferable share purchase warrants equal to 8 per cent of the number of units sold. Each broker warrant will entitle the holder to purchase one non-flow-through common share in the capital of the company for a period of 12 months from the date of issuance, at a purchase price of 17.5 cents per share. The cash commission will be paid from unallocated working capital of Gold Bullion and not from the proceeds from sale of the units.