Golden Predator Announces $2.2 Million Private Placement
Not for distribution in the United States or to U.S. Newswire Services
Vancouver, BC - April 24, 2009 - Golden Predator Royalty & Development Corp. (GPD) announces a non-brokered private placement offering of up to 4,400,000 units at a price of $0.50 per unit for proceeds of up to $2.2 million. These funds along with those raised in the recently completed rights offering (see press release dated April 15, 2009) will be utilized to mount an aggressive spring 2009, drill campaign at several of the Company's advanced bonanza style gold and silver targets in Nevada.
Upcoming drill programs will be focused on:
High-Grade Project: drilling follow up of several +1 oz./t gold samples recently assayed at the High Grade project in Modoc Co., California. High-Grade contains classic high-level epithermal vein textures with numerous historic workings along nearly 6 km of strike length.
Taylor: drilling to focus on following up two historic vertical holes that were drilled to depths of 800 and 732 feet with drill hole T98 intersecting two thin zones of high grade silver mineralization grading 110.31 oz/t and 408 oz/t. This resulted in several deeper vertical holes being drilled; the best of these being hole T130 which intersected 2 feet of 3,107 oz/t Ag. Four angle holes are planned to test these exceptionally high grade intervals while a fifth angle hole is recommended to test for a southern extension of this mineralization. The historic assay database from Silver King mine is incomplete and no assaying for gold is evident.
Angel's Camp: drilling by the Company will follow up the high grade gold intercept (1.735 oz/t over 5.5 ft in drill hole AC-10) drilled by Quincy Gold Corp. in 2004 and extend the 150 feet of known vein strike length to attempt to double this length and extend the mineralization to depth. Initial 3-D modeling of the Quincy drilling identified a clear trend and high grade gold shoot within the vein.
About the Private Placement
Each unit will consist of a share and a half warrant. Each whole warrant may be exercised for a period of one year from the date GPD is listed on a Canadian stock exchange to acquire one additional share at exercise prices of $0.60 per share for the first 3 months from the listing date, and thereafter at $0.65, $0.75 and $0.90 per share for each subsequent 3 month period, subject to a maximum exercise period expiring September 6, 2010.
GPD received proceeds of approximately $4.3 million from the exercise of the rights issued to shareholders of EMC Metals pursuant to the recently completed spin-out of GPD from EMC Metals. If the private placement is fully subscribed, the combined proceeds to GPD from the rights offering and private placement will be approximately $6.5 million.
GPD will apply the proceeds from the rights offering and private placement towards a planned intensive drilling program on GPD's advanced exploration properties.
About Golden Predator Royalty & Development Corp.
Golden Predator Royalty & Development Corp. will be listed shortly under the symbol GPD on the TSX-V. The company is focused on becoming a mid-tier precious metals producer in Nevada through the strategic use of its Taylor milling facility near Ely, NV and through a facilities use agreement at the Springer Facility with its sister company, EMC Metals Corp. Golden Predator is moving forward on several of its gold and silver projects in 2009 with the mandate to identify one or more properties for near term production of small-tonnage high grade opportunities. In addition, the company is partially self-financed though its passive royalty stream from a portfolio of properties that are anticipated to yield approximately $1.2 million at current gold prices for 2009.
Golden Predator Royalty & Development Corp.
William Sheriff, Chairmen (972) 333-2214
Steven Vanry, President (604) 648-6440
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
This press release does not constitute an offer of securities in the United States. The securities referenced herein have not been and will not be registered under any federal or state securities law of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.