Gold Bullion Development Corp. (the "Company", TSX.V: GBB) announces a nonbrokered private placement financing consisting of up to 13,571,428 units (the “Units”) at a purchase price of $0.07 per Unit to raise gross proceeds of up to $950,000 (the "Private Placement"). Each Unit will consist of one common share in the capital of the Company and one transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share in the capital of the Company for a period of two years from the date of issuance, at a purchase price of $0.10 per share during the first year and $0.12 per share during the second year.
The Company will pay finder’s fees to arm’s length parties (“Finders”) in connection with the Private Placement, equal to 10% of the gross subscription proceeds realized from the sale of Units by the respective Finder, payable in cash and in addition, at the discretion of the Company, will issue transferable share purchase warrants (“Finder’s Warrants”) equal to 10% of the number of Units sold by the respective Finder. Each Finder’s Warrant will entitle the holder to purchase an additional common share in the capital of the Company for a period of two years from the date of issuance, at a purchase price of $0.10 per share during the first year and $0.12 per share during the second year. Certain directors, officers and insiders of the Company may participate in the Private Placement. The securities issued will be subject to a hold period of four months and one day.
Proceeds of the Private Placement will be used for the development of the Company’s Granada Gold Mine and Castle Silver Mine. The Private Placement will be subject to approval by the TSX Venture Exchange.