|September 03, 2008|
Private Placement Closing and Business Divestiture
|Private Placement |
Further to its news release of July 25, 2008, Garibaldi Resources Corp. (the "Company") announces that it has closed its private placement following the sale of 3,000,000 units of its securities at a price of $0.20 per unit which raised $600,000 for the Company. Each unit consists of one common share in the capital of the Company and one-half of a non-transferable share purchase warrant with each whole warrant (the "Warrant") entitling the holder to acquire one additional common share of the Company at a price of $0.30 per share for two years.
In conjunction with the placement, the Company has paid Bolder Investment Partners Ltd. ("Bolder") and LOM Nominees Limited ("LOM") a finder's fee for the introduction of subscribers for the offering. Bolder introduced Sprott Asset Management Inc. which subscribed for 2,500,000 units of the offering on behalf of funds it manages. For its role, Bolder has been paid $40,000 in cash and has been issued 250,000 Finder's Warrants. LOM introduced subscribers for 500,000 units of the offering and has been paid $8,000 in cash and has been issued 20,000 Finder's Warrants. Each Finder's Warrant entitles the holder to acquire one additional common share of the Company at a price of $0.30 for one year. The units, the Finder's Warrants and any underlying shares are subject to a hold period and may not be traded until December 14, 2008.
Meridian Stone Inc. Divestiture
The divestiture of the Company''s 85% interest in Meridian Stone Inc. ("Meridian") to Meridian''s management team, also announced July 25, 2008, was made for nominal consideration. Meridian has been in operation for three years and had failed to achieve self-sufficiency in the agreed time frame. The divestiture includes the assignment to the purchasers of the Company''s shareholder loan of approximately $700,000 due from Meridian in consideration of the contingent payment of up to $200,000 to the Company should the purchasers realize net profits on the exercise of options held by them in the Company prior to their expiry in 2010. The divestiture allows the Company to focus its efforts fully on its mineral resource exploration activities.
GARIBALDI RESOURCES CORP.
per: "Steve Regoci" Steve Regoci, President
You can view the Next News Releases item: Tue Feb 17, 2009, Garibaldi Acquires 6,000,000 Shares of Paramount Gold and Silver Corp. in Exchange for the Rights to Temoris Silver Disctrict, Mexico
You can view the Previous News Releases item: Fri Jul 25, 2008, Private Placement Financing and Business Divestiture
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