Bralorne Gold Mines Ltd.

Bralorne Gold Mines Ltd.

October 01, 2009 15:22 ET

Bralorne Gold Mines Ltd.: MGI Brokered Private Placement-1st and 2nd Closings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2009) - Bralorne Gold Mines Ltd. (TSX VENTURE:BPM)(PINK SHEETS:BPMSF)(BERLIN:GV7)(FRANKFURT:GV7)(WKN 0B75M) (the "Company") announces that it has closed the first tranche of the brokered private placement with MGI Securities Inc. of Toronto, Ontario ("MGI") first announced on July 13, 2009 and the first and second tranches of a concurrent non-brokered private placement for aggregate gross proceeds of $3,910,238.70.

The first closing, dated September 28, 2009 (the "First Closing"), of securities placed by MGI consisted of 2,914,222 Units at a price of $0.90 per Unit and 721,462 Flow-Through Units at a price of $0.95 per Flow-Through Unit, for total gross proceeds of $3,308,188.70. The Units consist of one common share and one non-transferable share purchase warrant (a "Warrant"). The Flow-Through Units for the brokered private placement 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 First Closing non-brokered private placement consisted of a of 107,000 Flow-Through Units and the second closing, dated September 30, 2009 (the "Second Closing") consisted of 556,000 Units, for total aggregate gross proceeds of $602,050.00.

Each Warrant comprised within the Flow-Through Units and Units entitles 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 issue, provided that if the Company's common shares close at $2.00 per share over 20 consecutive trading days, then the Company will have the right to require conversion of the First Warrants.

The securities issued under the First Closing and the Second Closing of this private placement are subject to a four month and one day hold period, expiring on January 29, 2010 and January 31, 2010 respectively.

The Company has paid a cash commission of 8% of proceeds from the funds raised by MGI and its sub-agents and non-transferable compensation options have been granted to MGI and its sub-agents, exercisable to purchase Units equal to 10% of the aggregate number of Flow-Through Units and Units sold by MGI and its sub-agents for a total of 363,568 Units. The Company has also paid a finder ("Finder") a cash commission of $1,208 and issued 1,600 compensation options Units placed under the non-brokered private placement. Each compensation options will entitle MGI (or any member of the selling group, who is assigned the right to receive a portion of the Compensation Option) and the Finder to purchase one Unit at an exercise price of $0.90 per Unit for a period of 24 months from the date of issuance, such Agent's Compensation Options expiring on September 28, 2011 as per the applicable closing date.

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 Company is a Canadian junior mining and exploration company, whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties. The Company's current project is a 100% interest in the Bralorne Gold Mine, BC.


William Kocken, Chief Executive Officer & President

This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

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
    Bralorne Gold Mines Ltd.
    Johnathon Smith
    604.682.3600 (FAX)