Goldeye Explorations Limited
TSX VENTURE : GGY

Goldeye Explorations Limited

October 08, 2009 17:10 ET

Goldeye Announces Completion of $474,000 Private Placements

TORONTO, ONTARIO--(Marketwire - Oct. 8, 2009) - Goldeye Explorations Limited (TSX VENTURE:GGY) is pleased to announce the completion of partially brokered private placements for gross proceeds totalling $474,000 through the sale of 3,400,000 flow-through units at $0.06 per unit and 5,400,000 non-flow-through units at $0.05 per unit. Each flow-through unit consists of one flow-through common share and one-half of a non-flow-through common share purchase warrant. Each non-flow-through unit consists of one non-flow-through common share and one common share purchase warrant. One full warrant in either case entitles the holder to purchase an additional common share for two years at a price of $0.08 per share for the first year and $0.10 per share for the second year. The securities are subject to a four month hold period. 

Cash commissions (6% of $144,000) totalling $8,640 were paid on the brokered portion of the flow-through financing and 192,000 broker warrants (8% of 2,400,000) were issued to CIBC World Markets. Each broker warrant entitles the holder to acquire one common share of Goldeye at a price of $0.08 per share for the first year and $0.10 per share for the second year.

Cash commissions (8% of $100,000) totalling $8,000 were paid on the brokered portion of the non-flow-through financing and 160,000 broker warrants (8% of 2,000,000) were issued to Bolder Investment Partners Ltd. Each broker warrant entitles the holder to acquire one common share of Goldeye at a price of $0.08 per share for the first year and $0.10 per share for the second year.

The proceeds of the flow-through financing will be used for mineral exploration on Goldeye's Ontario mineral properties qualifying as Canadian Exploration Expense (CEE) under the Income Tax Act (Canada) enabling the subscriber to obtain applicable tax credits and deductions. The proceeds of the non-flow-through financing will be used for general and administrative purposes and to finance mineral exploration on Goldeye's mining properties.

A 3,000 meter drill program will commence on October 14, 2009 on the Big Dome Zone in Tyrrell Township property located 100 km south of Timmins, Ontario. The drill program will be focused on expanding the high grade gold mineralization along strike and to depth.

Goldeye is pursuing its three gold projects in Canada: Tyrrell and Sandy Lake (Ontario) and Todd Creek (Stewart Mining Camp, BC) and its gold/silver project in central Chile, Sonia Puma. 

There were 99,347,893 common shares of Goldeye issued prior to the abovementioned private placements.

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

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