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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$2.91 per Share to raise aggregate gross proceeds of approximately C$31,693,010.
The Baupost Group LLC ("Baupost"), a Boston, Massachusetts based institutional investor, purchased 7,891,069 Shares in the Offering for approximately $22,963,010 in 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 Sheridan who serves as the Chief Executive Officer and interim President and Chief Operating Officer of Guyana purchased 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 States unless registered under the Act or unless an exemption from registration is available.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based company, primarily focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Aurora Gold Project in Guyana has a current measured and indicated resource of 5.71 million ounces gold (47.040 million tonnes at a grade of 3.83 g/t) (see press release dated September 9, 2011). The Company plans to issue a revised Aurora resource estimate mid-2012 and a new FS by year-end. For further details regarding the Aurora Gold Project, reference should be made to the technical report for the Aurora Gold Project on SEDAR at www.sedar.com and on the Company website at www.guygold.com.
At the Aranka Properties, the Company has discovered a deposit at Sulphur Rose and N-1 and other highly prospective targets within a 5-km radius have been identified for drill testing in 2012.
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GGI to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the final findings set forth in the Feasibility Study , general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although GGI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and GGI disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
SOURCE Guyana Goldfields Inc.