RE: Two large funds Franklin Advisers & Baupost Gr Guyana Goldfields Inc. Announces Closing of Private Placement to Raise $31,693,010
07:00 EDT Wednesday, April 25, 2012
/NOT FOR DISTRIBUTION IN THE UNITED STATESOR TO U.S. NEWSWIRE SERVICES/
TORONTO, April 25, 2012/PRNewswire/ - 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$2.91per Share to raise aggregate gross proceeds of approximately C$31,693,010.
The Baupost Group LLC ("Baupost"), a Boston, Massachusettsbased institutional investor, purchased 7,891,069 Shares in the Offering for approximately $22,963,010in 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 Sheridanwho serves as the Chief Executive Officer and interim President and Chief Operating Officer of Guyanapurchased 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.
The securities issued in connection with the Offering have a hold period expiring on August 25, 2012. The net proceeds of the Offering will be used towards the strategic plans for 2012 outlined in the Company's press release of April 11, 2012, and to continue exploration of the Company's portfolio of gold exploration properties in Guyana, South America. The Offering remains subject to the final approval of the Toronto Stock Exchange. The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United Statesunless registered under the Act or unless an exemption from registration is available.