GGL Diamond Corp. intends to raise up to $1.4-million by way of a non-brokered private placement. A combination of flow-through units at a price of eight cents per unit and non-flow-through units at a price of six cents per unit will be sold. Each flow-through unit will consist of one flow-through common share and one-half of one non-transferable non-flow-through warrant. Each whole warrant will entitle the holder to purchase one non-flow-through common share for one year from the closing date at 10 cents per share.
Each non-flow-through unit will consist of one non-flow-through common share and one-half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one non-flow-through common share for three years from the closing date at 10 cents per share in the first year, 20 cents per share in the second year and 30 cents per share in the third year.
If GGL’s common shares trade on the TSX Venture Exchange at a closing price greater than 50 cents per share for 20 consecutive trading days at any time after four months and one day from the closing date, GGL may accelerate the expiry of the warrants by giving notice to the holders thereof, and in such case the warrants will expire on the 30th day after the date on which such notice is given. GGL may pay finder’s fee to eligible finders of purchasers of units. Such fees will be paid in non-flow-through common shares.
The proceeds from the sale of the units will be used for trenching, sampling and drilling of the PGB gold areas, and for general corporate purposes. The proceeds from the sale of the flow-through shares will be used to incur Canadian exploration expense (CEE), as defined in the Income Tax Act (Canada). GGL will renounce such CEE to the subscribers effective for the 2009 tax year. The private placement is subject to acceptance for filing by the TSX Venture Exchange.
GGL also announces that it will hold an annual and special general meeting on Wednesday, Aug. 19, 2009, at the Terminal City Club in Vancouver. In addition to the annual business, GGL will ask for shareholder approval of a special resolution to change the company name to GGL Resources Corp. to better reflect the variety of mineral exploration projects in which GGL has an interest.
