Garson Gold Closes $2.15 Million Financing
VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 30, 2008) – Garson Gold Corp. (TSX VENTURE:GG) (“Garson Gold” or “the Company”) announces it has closed a secured, 2 year convertible debenture (“the Debenture”) financing in the amount of $2,150,000 with the RMB Resources division of RMB Australia.
The Debenture may, at any time prior to maturity and at the option of the holder, be converted in whole or part into common shares of the Company at a price of $0.1335 per share (“Conversion Price”). The debenture bears an interest rate of 10% per annum compounded monthly and payable quarterly in arrears, and includes 4,000,000 detachable warrants, each warrant exercisable for one common share of the Company at $0.1668 for a period of two years from closing. Should the closing price of the common shares of the Company exceed $1.00 for a period of 20 consecutive trading days, the Company has the option of forcing conversion of all or any portion of the then outstanding principal and any unpaid and capitalized interest into common shares of the Company at the Conversion Price.
All securities issued will be subject to a four-month hold period. An arrangement fee of 5% of gross proceeds has been paid. The net proceeds received by the Company will be used to repay a $2 million loan currently outstanding and for general corporate working capital.
ABOUT GARSON GOLD
Garson Gold holds a 100% interest in The New Britannia Mine (NBM) Project in Manitoba and the Copper Prince and McMillan Gold Mine Projects in Ontario. The Company’s flagship project is the NBM, which covers approximately 3,900 hectares and hosts the historic New Britannia Gold Mine. NBM operated from 1949 to 1958 and again from 1995 to 2004 and produced approximately 1.43 million ounces of gold. The historical resource estimate at the NBM property, audited by Micon International Ltd. in accordance with CIM classifications pursuant to National Instrument 43-101, is available for viewing on Sedar (www.sedar.com) and www.garsongold.ca. A modern mill capable of processing 2,150 tonnes/day and ancillary surface and underground infrastructure facilities have been kept on care and maintenance since the NBM project was purchased by the Company in December 2006.
In addition to the current exploration and drilling activities, a scoping study is underway to assess a feasible strategy of re- establishing gold production at the New Britannia Mine Property.
On Behalf of the Board,
David G. Tafel, President and Director
This news release may contain forward looking statements concerning future operations of Garson Gold Corp. (the “Company”). All forward looking statements concerning the Company’s future plans and operations, including management’s assessment of the Company’s project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company’s control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
(c) 2008 Marketwire. Provided by ProQuest Information and Learning. All rights Reserved.