JET GOLD ANNOUNCES CLOSING OF FLOW-THROUGH FINANCING WITH MINERALFIELDS GROUP
TSX.V: JAU
VANCOUVER, May 26, 2011 /PRNewswire/ - Jet Gold Corp. (TSX-V: JAU) (the "Company") is pleased to announce the closing of a non-brokered private placement with the MineralFields Group of 2,954,545 flow-through units ("FT Units") at a price of $0.22 per FT Unit for total proceeds of $650,000. Each FT Unit consists of one flow-through common share and one non-flow-through share purchase warrant with a term of 24 months and an exercise price of $0.25, and is subject to a hold period until September 14, 2011.
In connection with the private placement, the Company paid a cash finder's fee of 6% of the gross proceeds and issued options to acquire units equal to 10% of the number of FT Units subscribed for to Limited Market Dealer Inc. Each option has a term of 24 months, is subject to a hold period until September 14, 2011, and entitles the holder to purchase one unit at an exercise price of $0.25 in year 1 and $0.35 in year 2. Each unit consists of one common share and one share purchase warrant with a term of 24 months and an exercise price of $0.35 in year 1 and $0.45 in year 2.
The completion of the private placement and the payment of the finder's fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The proceeds of the flow-through financing will be used to conduct exploration on the Company's Big Hammer gold/tellurium property located SE of Terrace, British Columbia and also a work program on the company's Kshish molybdenum property located NE of Terrace. The Company expects to start the exploration of both properties with an airborne survey over both claim groups in June. Ground exploration of sampling, geological mapping and trenching is expected to follow on the Big Hammer property. Exploration work on the Kshish property is expected to begin in late June or early July depending on ground conditions.
Brad J. Moynes, President of the Company stated, "We are very pleased to be entering into this relationship with the MineralFields Group. This financing is an important milestone in the growth of the Company and we look forward to working with MineralFields as we develop our holdings in the Big Hammer and the Kshish properties."
"About MineralFields, Pathway and First Canadian Securities ®"
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®, and have raised over $1 billion in their 10 year history.
On behalf of the board of directors,
Jet Gold Corp.
"Brad J. Moynes"
Brad J. Moynes
President & CEO
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
SOURCE Jet Gold Corp.
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