Dec. 18, 2009 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG) is pleased to announce the closing of a non-brokered private placement on December 15th, 2009.
A total of 12,500,000 Flow-Through Units at a purchase price of $0.08 per Unit were issued pursuant to a non-broker private placement. Each Flow-through Unit consisted of one flow-through common share, and one half of one (1/2) non-flow-through common share purchase warrant having a term of 24 months from the date of issue and an exercise price of $0.12. Each whole warrant entitles the holder to purchase one non-flow-through common share of the Corporation. The Corporation paid a 5% cash finder's fee to registered dealers for services rendered in introducing certain subscribers to the offering (each, a "Finder"), together with that number of non-transferrable finder's fee common share purchase warrants equal to 10% of the Flow-Through Units subscribed for through such registered dealers. Each finder's fee warrant entitles a Finder to subscribe for one non-flow-through common share of the Corporation, at an exercise price of $0.12 for 24 months. The closing of this offering has been conditionally approved by the TSX Venture Exchange Inc.
King's Bay Gold Corporation intends to utilize the proceeds from this non-brokered private placement for the ongoing exploration and development of its joint-ventured Bobjo Mine Property and at its other projects.
"We are very pleased to be renewing our relationship with the MineralFields Group", said John Archibald, President & CEO. "This is another important milestone in the growth of King's Bay Gold Corporation (TSXV:KBG) and we look forward to once again be working with MineralFields Group as we continue to develop our holdings in the Red Lake Gold Camp of Northwestern Ontario."
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal 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. Pathway Asset Management also specializes in the manufacturing and distribution of structured products (NYSE:HZK) 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 ® 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
About King's Bay Gold
King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. The Corporation is a very active Canadian mineral exploration company with mineral projects located in Canada's main gold camp - Red Lake, ON. Strategic properties include - (1) The Headway, a property located in Red Lake, ON (exploring for gold with Mega Precious Metals Inc. (OOTC:MPRXF) (TSXV:MGP) ); (2) The Bobjo Mine, a past producing gold mine (exploring for gold and rare earths elements with Mainstream Minerals Corporation (OOTC:MSMCF) (TSXV:MJO) ); (3) The Fort Frances property (exploring for PGEs and diamonds); and (4) the newly acquired Raleigh Lake property (exploring for rare earth elements).
KBG Shares Outstanding: 67,256,903
King's Bay Gold Corporation
John Archibald
President & CEO
(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 TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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