Vancouver, BC, September 17th, 2010 – Gold Standard Ventures Corp. (“Gold Standard”) (TSX: GV) is pleased to announce that it has closed the first tranche of its private placement financing announced on Thursday September 9, 2010 (the “Financing”). The Company closed an initial 2,684,616 units (“Units”) at a price of $0.65 per Unit for gross proceeds of $1,745,000. The Company has also increased the Financing by an additional $1,000,000 to $3,500,000 or a total of 5,384,615 Units. Gold Standard expects to close the 2nd tranche of the Financing next week.
Each Unit consists of one common share and one transferrable share purchase warrant (a “Warrant”) to purchase an additional common share at a price of $1.00 for a period of 24 months.
The Warrants are also subject to an acceleration clause which provides that if, after four months following the closing date, the weighted average trading price of the Company’s common shares is equal to or exceeds $1.50 per share for a period of 15 consecutive trading days or more, the Company will have the right to accelerate the expiry date of the Warrants upon 30 days notice to the warrantholders.
A commission of $104,650 cash and non-transferable agent’s warrants to purchase up to 161,000 common shares at a price of $0.65 per share for a period of 24 months was issued to Canaccord Genuity Corp.
All securities issued in connection with the initial closing of the Financing are subject to a 4 month hold period expiring on January 11, 2011.
The proceeds from the private placement will be used for exploration on the Company’s Railroad Project in Nevada and working capital.
ABOUT GOLD STANDARD VENTURES – Gold Standard Ventures is focused on the acquisition and exploration of gold projects in North Central Nevada. Gold Standard currently holds a portfolio of projects totaling approximately 20,000 acres of prospective ground within North Central Nevada of which 9,064 acres comprise the flagship Railroad Gold Project.
Neither the 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 news release.
On behalf of the Board of Directors of Gold Standard,
Jonathan Awde, President and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Email: [email protected]
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
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