Jun. 27, 2011 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG)(the "Issuer") is pleased to announce that it has closed a non-brokered private placement of 2,030,000 "Non-Flow Through" Units at a purchase price of $0.05, for gross subscription proceeds of $101,500.00, and 3,000,000 "Flow Through" Units at a subscription price of $0.05, for gross subscription proceeds of $150,000.00, for aggregate subscription proceeds of $251,500.00. The offering was made to subscribers resident in the Provinces of British Columbia, Alberta, Manitoba and Ontario.
Each "Non-Flow-Through" Unit consisted of and separated immediately upon issuance into one Class "A" common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each "Flow-Through" Unit consisted of and separated immediately upon issuance into one Common Share issued as a "flow-through share" within the meaning of the Tax Act and one-half Warrant (a "Flow-Through Warrant"). Each whole Warrant shall entitle its holder to acquire one Common Share at an exercise price of $0.10 per Common Share for a period of twenty four (24) months from its date of issue, all on the terms and subject to the conditions set forth in this Subscription Agreement. The Common Shares and Warrants issued in connection with this offering will be subject to a hold period of four months plus one day.
The Issuer intends to make use of the proceeds from the sale of the Flow Through Units of this Offering for exploration and drilling initiatives for fiscal 2011 and in particular, the Menary Township Project, and use the proceeds from the sale of the Non Flow-Through Units for general working capital, corporate purposes and for the maintenance of its property claims.
Macquarie Private Wealth Inc., Norstar Securities Limited Partnership, Fab Carella, and Canaccord Genuity Corp. were paid a cash finder's fee of 8% of the proceeds received from the sale of "Non-Flow Through" and "Flow Through" Units.
The closing of this offering is subject to the final approval of the TSX Venture Exchange Inc.
About King's Bay Gold Corporation (TSXV:KBG)
King's Bay Gold Corporation is a very active Canadian mineral exploration and development company with mineral projects located in two of Canada's main gold camps - the Red Lake, ON and Rainy River, ON gold camps.
KBG Shares Outstanding: 90,156,913
King's Bay Gold Corporation
Kyle Picard
President 204-253-4653
info@kingsbaygold.com
www.kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and readers are cautioned against placing undue reliance thereon.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
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