Gold Bullion announces Granada Royalty Shares
VANCOUVER, Dec. 4, 2013 /PRNewswire/ - Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company") or "Gold Bullion") announces that it is considering raising funds by issuing a new series of shares, to be called "Granada Royalty Shares", by way of private placement. The purpose of the Granada Royalty Shares will be to allow investors to participate in the security of gold ownership if and when Gold Bullion's Granada Gold Property enters into commercial production. The Granada Gold Property is near Rouyn-Noranda, Québec.
Following the commencement of commercial production at Gold Bullion's Granada Gold Property, the Granada Royalty Shares will entitle the holders thereof to receive a percentage of the refined gold produced from the Granada Gold Property for so long as Gold Bullion has an ownership interest in the Property. The aggregate percentage of the refined gold to which holders of Granada Royalty Shares will be entitled and the issue price of the Granada Royalty Shares will be determined by Gold Bullion's Board of Directors prior to the issuance of the shares. In certain circumstances, it may be possible for Gold Bullion shareholders to acquire Granada Royalty Shares by tendering their Gold Bullion common shares.
The Granada Royalty Shares will provide that Gold Bullion will make payments to holders of the shares, on a quarterly basis, by depositing the refined gold to which the holder is entitled or its equivalent in a "metal account" or other account designated by the holder. In the event that a holder has not designated an account into which the refined gold is to be deposited, Gold Bullion will sell the refined gold and pay the proceeds from the sale to the holder, net of commissions, applicable taxes and any related expenses incurred by Gold Bullion in making such sale.
Gold Bullion will have the right to redeem the Granada Royalty Shares at any time. If Gold Bullion redeems Granada Royalty Shares, it will pay to the holders a redemption price equal to the volume weighted average trading price of the Granada Royalty Shares on the stock exchange on which the shares are then listed for the last five days on which the shares traded immediately prior to the date of Gold Bullion's redemption notice. In the event that the Granada Royalty Shares are not listed or posted for trading on a stock exchange, the redemption price will be equal to the fair market value of the Granada Royalty Shares as determined by the Board of Directors of Gold Bullion in its sole discretion.
Gold Bullion cannot guarantee that the Granada Gold Property will enter into commercial production, that the proposed Granada Royalty Shares will be issued or listed on any stock exchange or, if issued, the amount of funds that Gold Bullion will raise from such issuance. The issuance of the Granada Royalty Shares may be subject to shareholder and regulatory approval. The Granada Royalty Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec, and its high grade Castle Silver Mine in Gowganda, Ontario. Additional information on the Company's Granada gold property is available by visiting the website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Gold Bullion Development Corp.