TSXV: GGE
VANCOUVER,
Sept. 27, 2013 /CNW/ - GREAT NORTHERN
GOLD EXPLORATION CORPORATION (TSX-V: GGE) (the "Company")
announces an increase to the non-brokered common share private
placement from $250,000 to
$750,000. The Company will
issue up to 15,000,000 common shares at a purchase price of
$0.05 to raise gross proceeds of up
to $750,000 (the "Private
Placement").
The net proceeds from the Private Placement will
be used by the Company to fund the expenses associated with the
business combination with the specialty finance and service company
previously announced on July 11, 2013
(the "Transaction"). The expenses associated with the
Transaction include customary due diligence, legal, accounting,
sponsorship, corporate finance fees, filing and other transactional
fees. Any remaining funds following the close of the
Transaction will be utilized as working capital by the resulting
issuer.
The Company will pay a finder's fee in
connection with the Private Placement of 10% cash and 10% common
share purchase warrants at a warrant exercise price of $0.05 per common share in the share capital of
the Company, exercisable over a period of three years from the date
of closing. The Private Placement is subject to a number of
conditions, including receipt of all necessary corporate and
regulatory approvals, including approval by the TSX Venture
Exchange. The Transaction remains subject to a number of
material conditions, including due diligence, regulatory approval
and the negotiation and execution of a definitive agreement.
As such, there can be no assurance that the Transaction will
complete. The shares of the Company will remain halted.
Specific details of the Transaction will be disclosed when the
conditions have been satisfied or waived.
All securities issued in connection with the
Private Placement will be subject to a statutory hold period of
four months plus a day from the date of issuance in accordance with
applicable securities legislation.
ON BEHALF OF THE BOARD OF DIRECTORS
"Kim Oishi"
Kim Oishi, CEO
STATEMENTS IN THIS PRESS RELEASE REGARDING THE
COMPANY'S BUSINESS WHICH ARE NOT HISTORICAL FACTS ARE
"FORWARD-LOOKING STATEMENTS" THAT INVOLVE RISKS AND UNCERTAINTIES,
SUCH AS ESTIMATES AND STATEMENTS THAT DESCRIBE THE COMPANY'S FUTURE
PLANS, OBJECTIVES OR GOALS, INCLUDING WORDS TO THE EFFECT THAT THE
COMPANY OR MANAGEMENT EXPECTS A STATED CONDITION OR RESULT TO
OCCUR. SINCE FORWARD-LOOKING STATEMENTS ADDRESS FUTURE EVENTS AND
CONDITIONS, BY THEIR VERY NATURE, THEY INVOLVE INHERENT RISKS AND
UNCERTAINTIES. ACTUAL RESULTS IN EACH CASE COULD DIFFER MATERIALLY
FROM THOSE CURRENTLY ANTICIPATED IN SUCH STATEMENTS. THE COMPANY
DOES NOT ASSUME ANY OBLIGATION TO UPDATE OR REVISE EVENTS OR
CIRCUMSTANCES UNLESS REQUIRED BY APPLICABLE SECURITIES LAWS.
The TSX Venture Exchange Inc. has in no way
passed upon the merits of the proposed transaction and has neither
approved nor disapproved the contents of this press
release.
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.
SOURCE Great Northern Gold Exploration Corporation