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Gold Bullion Closes Non-Brokered Private Placement and Retains Marketing and Investors Relations Consultants

September 4, 2014

Category: Baystreet Newswire

Company: Accesswire-TNW

ID: 419935

Date: Thursday, September 04, 2014

Ticker: PK:GBBFF

Vancouver, BC / ACCESSWIRE / September 4, 2014 / Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) ("Gold Bullion" or the "Company") is pleased to announce that it has closed a non-brokered private placement financing ("Private Placement") by the issuance of 18,091,019 flow-through units ("FT Units") at a purchase price of CDN $0.065 per FT Unit and 6,952,698 non-flow-through units ("NFT Units") at a purchase price of $0.05 per NFT Unit for gross proceeds of $1,523,551. Each FT Unit consists of one flow-through common share in the capital of the Company and one-half of a non-transferable share purchase warrant, each whole warrant entitling the holder to purchase one non-flow-through common share in the capital of the Company on or before September 6, 2016, at a purchase price of $0.10 per share. Each NFT Unit consists of one non-flow-through common share in the capital of the Company and one transferable share purchase warrant, each warrant entitling the holder to purchase one non-flow-through common share in the capital of the Company on or before September 6, 2016, at a purchase price of $0.10 per share. In connection with the Private Placement a director of the Company arranged a sale of 1,500,000 common shares of the Company at a price of $0.05 per share in a private transaction. The proceeds of this sale were used by the director's spouse to purchase an equivalent dollar amount of NFT Units in the Private Placement. The director also subscribed for an additional 438,461 FT Units in the Private Placement. The Company paid cash finders' fees totalling $73,255.80 in connection with the Private Placement. All securities issued by the Company pursuant to the Private Placement are subject to a hold period of four months and one day and cannot be resold until January 5, 2015. Proceeds of the Private Placement will be used for stripping and trenching on its Granada Gold Property in Quebec in preparation of its "Rolling Start" and for general working capital. Marketing and Investor Relations Gold Bullion also announces the engagement of two consultants to provide marketing and investor services. Palisade Capital Corp. of London, United Kingdom ("Palisade") has been retained as a marketing and investor relations consultant to the Company for a period of ten months at a fee of $100,000 plus expenses. Mr. Collin Kettell, C.E.O. of Palisade, will be primarily responsible for providing the consulting services to Gold Bullion. Palisade offers strategic consulting services to public and private companies who wish to expand their corporate profile and to attract new international investors. Palisade will organize introductions and meetings in the Europe, Canadian and U.S. investment community on behalf of Gold Bullion. The engagement of Palisade is intended to increase investor awareness of Gold Bullion and to increase liquidity in Gold Bullion's shares. Palisade has also been granted 300,000 stock options in the capital of the Company, exercisable at $0.10 per share for a period of twelve months. The options are granted pursuant to the Company's Stock Option Plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange, which require that options granted to a consultant providing investor relations services must vest in stages over twelve months with no more than one-quarter of the options vesting in any three month period. Palisade acquired 3,000,000 NFT Units of Gold Bullion at $0.05 per NFT Unit (gross proceeds of $150,000) under the Private Placement. The Company has also entered into an agreement with FronTier Merchant Capital Group ("FronTier") headquartered in Toronto, Canada to provide marketing and investor relations services for a term of twelve months. FronTier will assist the Company by increasing market awareness utilizing a number of financial market communications initiatives, the core of which will be facilitating in-person introductions for Gold Bullion with institutional and retail brokers and investors in a number of cities across Canada, the US, Europe and Australasia. Under the terms of the engagement, FronTier will receive compensation consisting of a monthly fee of $5,000 plus expenses and the grant of 250,000 stock options in the capital of the Company, exercisable at $0.10 per share for a period of twelve months. The options are granted pursuant to the Company's Stock Option Plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange, which require that options granted to a consultant providing investor relations services must vest in stages over twelve months with no more than one-quarter of the options vesting in any three month period. FronTier acquired an aggregate of 575,000 NFT Units and 250,000 FT Units (gross proceeds of $45,000) under the Private Placement. Gold Bullion's engagement of Palisade and FronTier is subject to TSX Venture Exchange approval. About Gold Bullion Development Corp.Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Quebec. Additional information on the Company's Granada gold property is available by visiting the website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com. "Frank J. Basa" Frank J. Basa, P.Eng. President and Chief Executive Officer For further information contact: Frank J. Basa, P.Eng., President and CEO at 1-514-397-4000 Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or for dissemination in the United States SOURCE: Gold Bullion Development Corp.


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Source: ACCESSWIRE (Canada)


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