Goldmark Minerals Ltd.

Goldmark Minerals Ltd.

February 02, 2007 07:00 ET

Goldmark Announces a Brokered Private Placement of up to 1,500,000 Dollars

CALGARY, ALBERTA--(CCNMatthews - Feb. 2, 2007) - Goldmark Minerals Ltd. (TSX VENTURE:GMK) is pleased to announce that it has entered into an agreement with Northern Securities Inc. to act as agent with respect to a brokered private placement to raise, on a best efforts basis, up to $1.5 million through the sale of up to 4,238,570 units in the capital of the Company at a price of $0.35 per unit.

Each unit will be comprised of 1 common share and 1/2 share purchase warrant. Each full purchase warrants shall entitle the purchaser to purchase a common share at a price of $0.40 per share for a period of 12 months from closing of the offering.

The net proceeds from the private placement will be used to continue to evaluate the Company's Abigail property and to evaluate the acquisition of new properties for Goldmark in Ecuador, other South American countries and Canada, and for general corporate overhead purposes. Initially, the net proceeds will be added to the Company's working capital.

All securities issued under the Private Placement will be subject to resale restrictions for 4 months following closing.

After giving effect to the Private Placement and assuming the offering is fully subscribed, the Company will have 16,139,994 common shares outstanding. The Company will pay a commission of 8% of the gross proceeds to the agent and will issue the agent a warrant entitling the agent to purchase up to an additional 8% of the units subscribed at a price of $0.35 per unit for a period one year from the closing of the offering.

The closing of the private placement is subject to all regulatory approvals. The proceeds of the Private placement will be escrowed until the TSX Venture Exchange has approved the acquisition of the Company's Abigail property in Ecuador. The details of the Abigail property acquisition are available in the press release of February 2, 2007 and are available on Sedar.

Goldmark is a Canadian public company with offices located in Calgary and Quito, Ecuador. Shares are listed on the Venture Exchange under the symbol GMK.

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

Contact Information

  • Goldmark Minerals Ltd.
    Peter Barker
    Chief Executive Officer
    (403) 299-0357
    Goldmark Minerals Ltd.
    Robert W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)