Bralorne Gold Mines Ltd.
TSX VENTURE : BPM
PINK SHEETS : BPMSF
FRANKFURT : GV7
BERLIN : GV7

Bralorne Gold Mines Ltd.

July 13, 2009 13:04 ET

Bralorne Gold Mines Ltd.: Brokered Private Placement

1,052,631 Flow-Through Units and 4,444,444 Units

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2009) - Bralorne Gold Mines Ltd. (the "Company") (TSX VENTURE:BPM)(PINK SHEETS:BPMSF)(BERLIN:GV7)(FRANKFURT:GV7)(WKN A0B75M) has arranged a brokered private placement with MGI Securities Inc. of Toronto, Ontario (the "Agent") of up to 5,497,075 Units consisting of 4,444,444 Units at a price of $0.90 per Unit and 1,052,631 Flow-Through Units at a price of $0.95 per Flow-Through Unit, to raise an aggregate of $5,000,000 (the "Offerings"). In addition, the Company has granted the Agent an over-allotment option to acquire up to an additional $2,500,000 worth of Units at $0.90 per Unit, if exercised within 5 business days of the final closing date and completed within 10 business days of the final closing date, to cover over subscriptions.

The 4,444,444 Units will consist of one common share and one share purchase warrant ("Warrant"). Each Warrant will entitle the investor to purchase one additional common share at an exercise price of $1.25 per share for a period of 24 months from the date of closing, provided that if the Company's common shares close at $2.00 per share or more over 20 consecutive trading days, then the Company will have the right to require conversion of the Warrants.

The Flow-Through Units consist of one flow through share and one Warrant. The flow through shares will entitle the investor to the income tax benefits of the qualifying Canadian exploration expenses incurred by the Company, which will be "flowed-through" to the investor in accordance with Canadian income tax laws.

The Agent will receive from the Company a cash commission of 8% of proceeds from the Flow-Through Units and Units sold under the Offerings and the over allotment option. In addition, the Agent will receive non-transferable compensation options (the "Compensation Options") exercisable to purchase that number of Units equal to 10% of the aggregate number of Flow-Through Units and Units sold under the Offerings and the over allotment option. Each Agent's Compensation Option will entitle the Agent (or any member of the selling group, who is assigned the right to receive a portion of the Compensation Option) to purchase one Unit at an exercise price of $0.90 per Unit for a period of 24 months from the date of closing.

The net proceeds of the offerings will be used for additional exploration and development work on the Company's mining properties and for general working capital requirements.

The above transactions will be subject to regulatory approval.

ON BEHALF OF THE BOARD

William Kocken, Chief Executive Officer & President

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the accuracy or adequacy of this release.

Contact Information

  • Bralorne Gold Mines Ltd.
    Bill Kocken
    Chief Executive Officer & President
    604.682.3701
    or
    Bralorne Gold Mines Ltd.
    Johnathon Smith
    IRO
    604.682.3701
    604.682.3600 (FAX)
    ir@bralorne.com
    www.bralorne.com