V.GRM Private Placement +84% premium to closing share priceCould someone take a stab at explaining why V.GRM is trading at $0.43 when they close a private placement at $0.80? Is it just market apathy or are investors waiting for a completion of the debt financing on this Argentinian Lindero project?
Goldrock Completes Final Tranche of $9,248,000 Private Placement
*NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES*
Vancouver, British Columbia – Goldrock Mines Corp. (TSX.V – GRM)
October 31, 2013
NR 13-12
Goldrock Mines Corp. (“Goldrock” or the "Company" ) is pleased to announce that it has completed the second and final tranche of the previously announced non-brokered private placement (the “Offering”) with Austral Gold Limited (“Austral Gold” or the “Purchaser”) by the issuance of 9,248,000 units (the “Units”) at a purchase price of $0.80 per Unit for gross proceeds of $7,398,400. Each Unit consists of one common share of the Company and one transferable share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one common share of the Company (a “Warrant Share”) at an exercise price of $0.80 per Warrant Share until October 31, 2018. The Unit price represents an 84% premium to the closing price of the Company's common shares on the TSX Venture Exchange on October 30, 2013. All securities issued in connection with the completion of the final tranche of the Offering will be subject to a hold period expiring on March 1, 2014. The net proceeds of $9,248,000 from the Offering will be primarily used for the further development of the Lindero gold project including detailed engineering and a down payment on long lead items, and for general working capital purposes. No finders’ fees were paid on the Offering.
In connection with the Offering, effective as of today’s date, Chad Williams has been appointed to the Company’s board of directors. For so long as Austral Gold maintains ownership of at least 5% of the Company’s issued and outstanding common shares, the Purchaser will have the right to nominate one person for election to the Company’s board of directors. Mr. Williams is the former CEO, President and Director of Victoria Gold Corp. where he raised $110 million in seven financings, completed 2 corporate mergers, and increased market value up to 20-fold in a four year period. Mr. Williams has extensive experience in mining, finance, and management. He was the Founder of Agilith Capital Inc. and Westwind Capital Inc. (now Stifel Nicolaus Canada Inc.) as well as being the former Head of Mining Investment Banking at Blackmont Capital Inc. and a top-ranked mining analyst at TD Bank and UBS.
Paul Matysek, President and CEO, commented: “
We are pleased to successfully close this private placement and commence work on the next critical steps in the construction of Lindero, and continue to de-risk the project's development and production schedule. The plus 80% premium on Goldrock’s current share price demonstrates the robustness of the Lindero project, together with the confidence of sophisticated Argentine investors in our project and the opportunities that Argentina offers.”
The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
For additional information
Paul Matysek, CEO and President
(604) 681-4462 or
www.goldrockmines.com