Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

October 07, 2009 07:30 ET

Grayd Announces Financings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Grayd Resource Corporation (TSX VENTURE:GYD) ("Grayd" or the "Company") is pleased to announce that it has retained Canaccord Capital Corporation ("Canaccord" or the "Agent") to act as agent on a commercially reasonable efforts basis, in connection with the offering for sale by way of TSX Venture Exchange Short Form Offering Document up to 5,000,000 units (the "Units") at a price of $0.40 per Unit for gross proceeds up to $2,000,000 (the "Short Form Offering"). Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one non-transferrable common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to subscribe for one additional common share at a price of $0.50 for a period of 18 months from the date of closing.

In addition to the Short Form Offering, the Company has negotiated a commercially reasonable efforts private placement with Canaccord for up to 2,500,000 Units having the same terms as the above for gross proceeds of up to $1,000,000 (the "Private Placement Offering"). The Company has also granted the Agent an over allotment option to solicit additional Units, subject to confirmation by the Company, to raise additional gross proceeds of up to $500,000, exercisable at any time up to forty-eight hours prior to closing.

On closing of the Short Form Offering and Private Placement Offering (the "Offerings"), the Company will pay the Agent a commission equal to 7% of the gross proceeds of the Units sold payable in cash and/or Units at the election of the Agent and will issue the Agent non-transferable warrants (the "Agent's Warrants") equal to 7% of the Units sold. Each Agent's Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.50 per Common Share for a period of 18 months from the closing. The Company will also reimburse the Agent for reasonable fees and expenses incurred in connection with the Offerings and pay a corporate finance fee consisting of 50,000 units.

The funds raised from the issuance of the Units shall be used to fund on-going work programs on the Company's La India Project in Mexico, potential acquisition of new properties and for general working capital purposes.

Closing of the Short Form Offering and the Private Placement Offering is anticipated to occur on or before November 5, 2009 and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

ABOUT GRAYD RESOURCE

Grayd Resource is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in Mexico which is highly prospective for gold and silver mineralization. The Company's Officers and Directors are experienced in all aspects of mineral exploration, development and production and have been involved with several successful mining projects during the past 20 years.

The information in this news release may contain forward-looking statements. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expression are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. Other than as required by applicable securities law, the Company does not update forward-looking statements continually as conditions change.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Grayd Resource Corporation
    Marc A. Prefontaine
    President and CEO
    604-681-7446
    604-684-9877 (FAX)
    www.grayd.com