Grayd Resource Corporation
TSX VENTURE : GYD

Grayd Resource Corporation

November 05, 2009 11:29 ET

Grayd Closes Financings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Grayd Resource Corporation (TSX VENTURE:GYD) ("Grayd" or the "Company") is pleased to announce that it has closed financings previously announced on October 7, 2009 with Canaccord Capital Corporation (the "Agent"). The Company has closed the financing by way of TSX Venture Exchange Short Form Offering Document by completing the sale of 5,000,000 units (the "Units") at a price of $0.40 per Unit for gross proceeds of $2,000,000 (the "Short Form Offering"). Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to subscribe for one additional common share at a price of $0.50 per share until May 5, 2011.

In addition to closing the Short Form Offering, the Company has closed the private placement of 2,500,000 Units having the same terms as the above (the "Private Placement Offering"). The Agent has exercised the over-allotment option of an additional 1,250,000 Units, bringing the aggregate gross proceeds raised under the Private Placement Offering to $1,500,000.

In connection with the Short Form Offering and Private Placement Offering (the "Offerings"), the Company paid the Agent a commission equal to 7% of the gross proceeds of the Units sold payable in a combination of cash and 137,500 Units, and issued to 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 reimbursed the Agent for reasonable fees and expenses incurred in connection with the Offerings and paid a corporate finance fee of 50,000 Units.

All Common Shares, Warrants, Agent's Warrants and any Common Shares issuable upon exercise of the Warrants and the Agent's Warrants, issued in connection with the Private Placement Offering are subject to a hold period expiring March 6, 2010.

All Common Shares, Warrants and Agent's Warrants, and any Common Shares issuable upon exercise of the Warrants and the Agent's Warrants, issued in connection with the Short Form Offering are subject to a hold period expiring March 6, 2010, except for 3,600,000 Shares, 1,800,000 Warrants, and 1,800,000 Common Shares issuable upon exercise of the Warrants, which are not subject to a hold period.

The funds raised from the Offerings shall be used to fund on-going work programs on the Company's properties and for general working capital purposes.

ABOUT GRAYD

Grayd 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. Except as required under applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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

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