VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/11/13 -- Further to previous announcements and its June 4 SEDAR filed information circular ("Information Circular"), Bullman Minerals Inc. (TSX VENTURE: BUL) (the "Issuer") announces that it has completed its purchase of all of the issued and outstanding shares of Birimian Gold AS ("Birimian") from Douro Gold AS ("Douro") of Oslo, Norway, and Goldsea Investment Group Co., Ltd. ("Goldsea"), a British Virgin Islands company controlled by a Chinese investment group. Pursuant to a purchase agreement that was originally signed December 28, 2012, amended April 11, 2013, and May 16, 2013 (and restated), the Issuer issued 18 million common shares ("Shares") in its capital to assignees of Douro and 5 million Shares to Goldsea for a total of 23 million Shares at a deemed price of $0.20 per Share and paid US$1 million cash to Douro for aggregate consideration of approximately $5.6 million. The 18 million Shares issued to the Douro assignees are subject to a Tier 2 Value Exchange prescribed Escrow Agreement and are scheduled to be released over a three (3) year period. The five (5) million Shares issued to Goldsea are subject to a Tier 1 Value Exchange prescribed Escrow Agreement ("Tier 1 Escrow Agreement") and are scheduled to be released over an 18 month period. The acquisition constitutes the Issuer's "Qualifying Transaction" as defined in the policies of the TSX Venture Exchange (the "Exchange").
Birimian wholly owns two Guinean resource exploration companies which each hold three licenses to properties (collectively, the "Properties") in the Republic of Guinea, in West Africa. 58,309 meters of shallow reverse circulation and 26,168 m of rotary air blast and air core drilling has been carried out on the Properties, which have identified several zones of gold mineralization. A NI 43-101 technical report documenting the historic exploration programs as well as recommendations for future exploration programs on the Properties has been filed by the Issuer on SEDAR.
The Issuer engaged Canaccord Genuity Corp. who assisted the Issuer in offering (the "Brokered Financing"), on a commercially reasonable efforts basis, 8,255,000 units ("Units") at $0.20 per Unit for gross proceeds of $1,651,000. Each Unit consists of one Share of the Issuer and one warrant ("Warrant"). Each Warrant is exercisable into one Share of the Issuer at $0.60 per Share for a period of two (2) years from the closing of the Brokered Financing. Compensation payable to Canaccord consisted of a work fee, a cash commission equal to 3.5% on 7,500,000 Units, 262,500 agent's warrants ("Agent's Warrants"), each Agent's Warrant entitling the Agent to purchase a common share in the capital of the Issuer ("Agent's Warrant Share") at $0.40 per Agent's Warrant Share for a period of 2 years from the Brokered Financing closing date, and 125,000 corporate finance fee units (the "Corporate Finance Fee Units"), each Corporate Finance Fee Unit consisting of a Share and a warrant ("Corporate Finance Fee Warrant") each Corporate Finance Fee Warrant entitling the Agent to purchase an additional Share at $0.40 per share. The proceeds are being used to cover certain expenses of the Qualifying Transaction and financings, to carry out exploration on the Properties, and for general working capital purposes.
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