SOURCE: GLR Resources

November 01, 2007 15:35 ET

GLR Resources Inc. Completes $2,000,000 Financing

KIRKLAND LAKE, ON--(Marketwire - November 1, 2007) - GLR Resources Inc. (TSX: GRS) (FRANKFURT: GKF) (the "Company") announces that it has completed a financing (the "Financing") with Blackfish Capital (Master) Fund 1 SPC ("Blackfish Capital Fund"), contracting for and on behalf of its Resource Special Situations Segregated Portfolio, pursuant to which Blackfish Capital Fund has advanced $2,000,000 to the Company (the "Loan").

The Loan has a maximum term of 12 months and bears interest at a rate of USD LIBOR plus 0.5% per 30-day period during the term. In connection with the Loan, the Company issued 3,389,830 warrants of the Company (each, a "Warrant") to Blackfish Capital. Each Warrant entitles the holder thereof to purchase one Class A voting common share of the Company until October 31, 2008 at a price of $0.59. The instrument governing the Warrants permits the holder of Warrants to physically settle amounts due to the Company upon exercise of such Warrants by setting-off amounts owed by the Company to such holder pursuant to the Loan.

In connection with the Financing, the Company paid an arrangement fee of $60,000 to Blackfish Capital Fund. Blackfish Capital Fund is 50% owned by a wholly owned subsidiary of Investec Bank (UK) Ltd.

The proceeds of the Financing will be used for making deposits on mining and milling equipment for the Company's Goldfields Project.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.

Not for distribution to U.S. Newswire Service or for Dissemination in the United States

Contact Information

  • For further information please contact:

    Robert J. Kasner
    President and Chief Executive Officer
    Phone: (705) 567-5351
    Fax: (705) 567-5557
    E-Mail: Email Contact

    P.O. Box 546, 4 Al Wende Avenue
    Kirkland Lake, Ontario
    P2N 3J5
    Tel: (705) 567-5351
    Fax: (705) 567-5557
    Email: Email Contact

    Saskatoon Office:
    515-45th St. West
    Saskatoon, Saskatchewan
    S7L 5X5
    Tel: (306) 652-0582