Golden Birch Resources Inc. Announces Close of Second Tranche of Private Placement of Approximately C$554,000
140 Cook’s Lake Road
Timmins, Ontario
P4R 0B7 Canada
Golden Birch News Release – July 30, 2020
Golden Birch Resources Inc. Announces Close of Second Tranche of Private
Placement of Approximately C$554,000
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES
Timmins, ON, Canada (July 30, 2020) – Golden Birch Resources Inc. (CSE: GBRX) (“Golden Birch”
or the “Company”) announces that, in connection with its previously announced private
placement (the “Offering”), the Company has completed the second tranche (“Second Tranche”)
of the Offering. The Offering is composed of the sale of units (“Units”) of the Company at a price
of C$0.15 per Unit. Each Unit consists of one common share in the capital of the Company
(“Share”) and one Share purchase warrant (“Warrant”). Each whole Warrant shall entitle the
holder to purchase one additional Share at an exercise price of C$0.20 per Share, for a period of
five (5) years from the date of issuance. The First Tranche consisted of the sale of 7,500,000 Units
for aggregate gross proceeds of C$ 1,125,000. The Second Tranche consists of the sale of
3,693,334 Units for aggregate gross proceeds of C$554,001.50. It is presently anticipated that
closing of the third and final tranche (the “Third Tranche”) of the Offering will occur on or around
August 17, 2020.
In connection with the closing of the Second Tranche, the Company has agreed to pay: to IBK
Capital Inc. (“IBK”) a commission of (i) C$47,025.01, payable in cash; and (ii) 348,333 broker
warrants to purchase Units (“Broker Warrants”), with each whole Broker Warrant entitling the
holder to purchase one additional Unit at price C$0.15 per Unit, for a period of five (5) years from
the date of issuance; and to Mackie Research Capital Corporation (“ Mackie”) C$2,025.00,
payable in cash; and (ii) 15,000 Broker Warrants.
Alan Martin, President and CEO of Golden Birch stated “We are very pleased to close this second
tranche of our financing with the support of IBK Capital. As per our recent News Releases, Golden
Birch has a portfolio of copper and gold prospects southeast of Port Moresby, Papua New Guinea.
Management believes that some of these prospects have certain characteristics of Tier-1
porphyry Cu-Au deposits in PNG currently being mined today. Golden Birch’s current focus
remains the commencement of our maiden drilling program which will be possible from the funds
generated by this private placement. With the money raised, we are delighted to have the
Company’s anticipated commencement of drilling at Omu and Waki in order to determine the
size and grade of these encouraging porphyry targets.”
All securities issued and issuable pursuant to the Offering will be subject to a hold period of four
months and one day from the date of issuance. Completion of the Offering is subject to the
receipt of all regulatory approvals, including the approval of the Exchange.
140 Cook’s Lake Road
Timmins, Ontario
P4R 0B7 Canada
Golden Birch News Release – July 30, 2020
Use of Proceeds
The Company intends to use the proceeds from this private placement for exploration on the
Keveri Project, specifically, the commencement of drilling on at least one of two discovery
targets, being Omu and Waki, which management believes has certain characteristics of Tier-1
copper-gold porphyry deposits. The proceeds will also be used for working capital, corporate
overhead and general and administrative purposes. For more information on the Omu and Waki
prospects, please see the previously issued press releases of the Company dated April 15, 2020
and March 25, 2020.
The Company is continuing its work on the establishment of an access road to the Keveri Project
to facilitate low cost exploration. The Company is also continuing to procure a drill rig and
associated equipment and other supplies necessary for its maiden drilling program on the Keveri
Project.
About Golden Birch Resources Inc.
Golden Birch Resources Inc. is a mineral exploration company focused on acquiring, exploring,
and developing quality mineral properties in Papua New Guinea. Core value for the Company are
respect for the Community, the Landowners, the environment and operating a safe workplace
for its employees. The Company is also committed to best practise standards of Corporate
Governance.
For further information please visit the Company’s website at www.goldenbirchresources.ca
or contact:
Golden Birch Resources
Iain Martin, Chief Administrative Officer (CAO)
& Executive Director
Yellow Jersey PR Limited
Sarah Hollins
Henry Wilkinson
Emma Becirovic
Tel: +1 (0) 705 288 0249
Tel: +44 (0) 20 3004 9512
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of
the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in
the United States of America. The securities have not been and will not be registered under the United States Securities Act
of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States
or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the
1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
Forward-Looking Statements
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian
Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results
to differ materially from the statements made. Such statements reflect the Company’s present views, future plans, objective
140 Cook’s Lake Road
Timmins, Ontario
P4R 0B7 Canada
Golden Birch News Release – July 30, 2020
or goals, including words to the effect that the Company or management expects a stated condition or result to occur.
When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”,
“estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Since forward-looking
statements are based on assumptions and address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Although these statements are based on information currently available to the Compan y, the
Company provides no assurance that actual results will meet management’s expectations. Many risks, uncertainties, and
other factors involved with forward-looking information could cause our actual results to differ materially from the
statements made, including those factors discussed in filings made by us with the Canadian securities regulatory
authorities.
Forward-looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future
plans, statements, such actual results of current exploration programs, the Offering, the general risks associated with the
mining industry, the price of copper, gold and other metals, currency and interest rate fluctuations, increased competition
and general economic and market factors, potential mineralization, the estimation of mineral resources, exploration and
mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that
could cause actual results to differ materially from such forward-looking information include, but are not limited to failure
to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a
feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in
obtaining or failures to obtain required governmental, environmental or other project approvals, political risks,
uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation,
changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating
costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry,
and those risks set out in the Company’s public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of
this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of
new information, future events or otherwise, other than as required by law.