Garson Gold Corp.

Garson Gold Corp.

September 10, 2009 16:31 ET

Garson Gold Announces Closing of $2.075 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2009) -


GARSON GOLD CORP. (TSX VENTURE:GG) ("Garson Gold" or "the Company") is pleased to announce the closing of its previously announced (news releases dated July 28, 2009 and August 25, 2009) private placement, raising total gross proceeds of $2,075,000.

Garson Gold has raised a total of $2,000,000 through Haywood Securities Inc., which was engaged to complete the brokered private placement. The Company raised $1,850,000 in common share units priced at $0.05. Each unit consists of one common share and one-half of one common share purchase warrant, with one whole common share purchase warrant exercisable for a period of two years from the closing date to acquire one common share in the capital of the Company at $0.12. The Company also raised $150,000 in flow-through units priced at $0.06. Each flow-through unit consists of one flow-through share and one-half of one non flow-through common share warrant, with one whole non flow-through common share warrant exercisable for a period of 2 years from the closing date at an exercise price of $0.08 during the first year and $0.12 during the second year.

Garson Gold also announces the concurrent closing of a non-brokered financing including common share units totaling $60,000 and flow-through units totaling $15,000 for an additional $75,000. These shares and units have the same terms as the brokered private placement.

The Company is further pleased to announce the participation of Alexis Minerals Corporation (AMC-T) in this placement; purchasing 27,000,000 in common share units priced at $0.05 representing approximately 12.8% of the outstanding shares of Garson. In conjunction with this investment, a nomination rights agreement and equity participation agreement have been executed which provides Alexis Minerals the right to appoint one director to Garson's Board and the right to maintain a pro rata share position in future equity offerings.

The common shares issued in connection with this private placement are subject to a four month hold period pursuant to applicable securities regulations, expiring January 11, 2010.

Net proceeds will be used to fund the exploration expenditures at the New Britannia Mine, and for working capital and general corporate purposes.

Finder's fees paid were $93,800 and a total of 1,018,000 broker options have been issued. Each option is exercisable into one common share of the company at an exercise price of $0.06 per common share in the first year and $0.10 in the second year for a period of 24 months following the closing date.

On Behalf of the Board,

David G. Tafel, CEO and Director

This news release may contain forward looking statements concerning future operations of Garson Gold Corp. (the "Company"). All forward looking
statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

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 release.

Contact Information