Sep. 22, 2009 (Filing Services Canada) -- Golden Dory Resources Ltd. (GDR - TSX Venture), (the "Company" or "Golden Dory") is pleased to announce that it is offering separate non-brokered private placements of up to 5,357,143 flow-through units ("FT Units") at a price of CDN $0.14 per FT Unit for gross proceeds of CDN $750,000 and up to 6,250,000 non flow-through units ("NFT Units") at a price of CDN$0.12 per NFT Unit for gross proceeds of CDN $750,000.
Each FT Unit will consist of one flow-through share and one-half of one share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share at a price of $0.25 per share for a period of 18 months from closing. Each NFT Unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire one additional common share at a price of $0.20 per share for a period of 18 months from closing. The proceeds from the offering will be used for exploration on Golden Dory's properties and for working capital.
The financing is anticipated to close in two or more tranches with the MineralFields Group subscribing for 2,714,285 of the FT Units ($380,000) for which the Company will pay a cash finder's fee of 5% and issue a non transferable finder's option to Limited Market Dealer Inc. (the "LMD Finder's Option"). The LMD Finder's Option will entitle the holder to purchase at a price of $0.14 up to 10% of the FT Units to be purchased by the MineralFields Group (the "LMD Finder's Units"), each LMD Finder's Unit consisting of one common share and one - half of a share purchase warrant, each whole warrant entitling the holder to acquire a further common share for $0.25 for a period of 18 months from closing.
The remainder of the financing will be subject to a cash finder's fee of 8% of proceeds raised plus a finder's option (the "Finder's Option") entitling the holder to purchase at a price of $0.14 each that number of units (the "Finder's Units") equal in number to 10% of the aggregate remaining number of FT units and NFT Units sold. The Finder's Units will have the same characteristics as the LMD Finder's Units.
This transaction is subject to approval from the TSX Venture Exchange. The Company currently has 29.6 million common shares issued and outstanding.
About Golden Dory Resources Corporation
Golden Dory is focused on gold exploration in Nevada, USA, gold and uranium exploration in the province of Newfoundland and Labrador, Canada, and lithium in Ontario. The company recently announced an option agreement with Reno, Nevada based AuEx Ventures, whereby Golden Dory can acquire a 70% interest in the Pequop South property in Elko County, Nevada. The company also recently signed a letter of intent to acquire a 100% interest in the Root Lake lithium property in northwestern Ontario. Golden Dory has 100% interests in the Burin intrusion hosted uranium property, the Little Rattling Brook gold property, and the Brady intrusion hosted gold property in central Newfoundland. Golden Dory is earning a 70% interest in the Huxter Lane intrusion hosted gold property and also has a 50% interest in the Sims Ridge Athabasca type uranium property in western Labrador. Golden Dory is seeking partners to jointly explore the Burin, Little Rattling Brook and Brady properties.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101. For further information contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201.
Neither the 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."
Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Golden Dory will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory.
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