Gold Bullion Enters into Shareholder Loan Agreements
2875 Ave Granada Rouyn Noranda, Québec J9Y 1J1 Tel: 819-797-4144 / Fax: 819-762-2306 GOLD BULLION ENTERS INTO SHAREHOLDER LOAN AGREEMENTS August 7, 2015 - Gold Bullion Development Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) reports the Company has entered into two non-dilutive loan agreements and a “Supply and Services” agreement for proceeds totalling $800,000.
The first loan agreement is with an existing shareholder structured as an “arms length” demand loan for proceeds of $200,000 over a three-year term at an interest rate of 8% calculated monthly and payable annually. The loan will automatically renew for an additional three-year term until such time as the lender agrees to terminate the agreement. The lender also has the option to obtain interest and principal loan repayments in gold rather than cash should that option become feasible while the loan remains in place. In that event, the gold is to be valued at US $ 800 per ounce. The lender also has the option to participate in future financings but is not obliged to do so. The outstanding loan balance is subject to repayment in full at any time at the discretion of the lender. The second loan is from a company owned by a Director of Gold Bullion and comprises a $100,000 demand loan also with a three-year term at an interest rate of 8% calculated monthly and payable annually. The third agreement is a “Supply and Services” non-interest bearing loan for $500,000 over the upcoming 12 month period from a company owned by a Director of Gold Bullion. The Director extending loans two and three has the option to obtain loan principal repayments including interest as applicable, in gold valued at US $ 800 per ounce if feasible.
The “Supply and Services” loan is to be used for specific projects on the property that will advance the Company forward. Future press releases will provide details on these projects as and when appropriate. A portion of the $300,000 cash raised is to be allocated for general working capital purposes.
No finder’s fees were paid in relation to any of these loan arrangements. The Granada Gold property is to be registered as security against the three loans. The three agreements remain subject to final approval from the TSX Venture Exchange.
Frank Basa, President and CEO of Gold Bullion noted, “This non-dilutive financing is an important step at this stage of development as it allows the Company to continue forward with the plan and prepare mineralized material for transport and processing.”
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 Gold Property located on the prolific Cadillac Trend close to Rouyn-Noranda, Québec. Near term gold mining operations will focus on high grade near surface material that will be trucked to Iamgold’s nearby processing facility. The project economics remain robust with all in cash costs forecast at US $797. The overall gold resource continues to grow and now stands at 1.58 Million ounces M & I @ 0.93 g/t plus 1.55 Million ounces Inferred @ 0.99 g/t with a 0.3 g/t cut-off. Additional information on the Company is available on the Company 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 1-819-797-4144 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. Forwardlooking 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.