King’s Bay Gold Corporation announces non brokered private placement financing
Winnipeg, MB – May 20, 2011
King's Bay Gold Corporation (TSX.V: KBG) (the "Issuer") is pleased to announce a non-brokered private placement of a maximum of 3,000,000 Class "A" Units at a purchase price of $0.05 for gross subscription proceeds of $150,000.00, and a maximum of 6,000,000 Class "B" Units at a subscription price of $0.05 for gross subscription proceeds of $300,000.00, for aggregate maximum subscription proceeds of $450,000.00. The offering will be made to subscribers resident in the Provinces of Ontario, Manitoba, Saskatchewan, Alberta and British Columbia, and such other jurisdictions as the Issuer may determine. It is anticipated that the closing of offering will occur on or around June 20, 2011.
Each Class "A" Unit shall be comprised of one Class "A" Common Share of the Issuer (a "Common Share"), issued as a "flow through" share for the purposes of The Income Tax Act (Canada) (a "Flow Through Share") and one half of one Common Share purchase warrant (a "Warrant") of the Issuer. Each Class "B" Unit shall be comprised of one Common Share and one whole Warrant. Each whole Warrant shall entitle the holder to purchase one Common Share for an exercise price of $0.10 for a period of 24 months following the date of issuance. The Common Shares and Warrants issued in connection with this offering will be subject to a hold period of four months plus one day.
The Issuer may, at its discretion, offer a 8% cash finder’s fee to registered dealers for services rendered in introducing certain subscribers to the offering (each, a “Finder”).
The closing of this offering is subject to the approval of the TSX Venture Exchange Inc.
About King’s Bay Gold Corporation
King’s Bay Gold Corporation is a very active Canadian mineral exploration and development company with mineral projects located in two of Canada’s main gold camps
- the Red Lake, ON and Rainy River, ON gold camps.
KBG Shares Outstanding: 85,036,913
King’s Bay Gold Corporation
John Archibald President & CEO [email protected] www.kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King’s Bay Gold Corporation’s business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company’s recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and readers are cautioned against placing undue reliance thereon.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.