Birim Goldfields Inc.

Birim Goldfields Inc.

March 16, 2005 08:37 ET

Birim Goldfields Inc. $3 Million Bought Deal Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BIRIM GOLDFIELDS INC.

TSX SYMBOL: BGI

MARCH 16, 2005 - 08:37 ET

Birim Goldfields Inc. $3 Million Bought Deal Financing

MONTREAL, CANADA--(CCNMatthews - March 16, 2005) - Birim Goldfields Inc.
(TSX:BGI) ("Birim" or "the Company") wishes to announce that the Company
has entered into an agreement (the "Agreement") with Canaccord Capital
Corporation ("Underwriter") for the sale, on a bought deal underwritten
basis, (the "Offering") of an aggregate of 6,000,000 million units
("Units") at a price of $0.50 per Unit for gross proceeds of $3,000,000.
The Underwriter has also been granted an over allotment option for an
additional 2,000,000 Units ($1,000,000) which, if exercised prior to
closing, will provide the Company with gross proceeds of $4,000,000.
The Offering is subject to approval by the Toronto Stock Exchange.

Each Unit will be comprised of one common share ("Common Share") and one
half of one share purchase warrant ("Warrant"). Each whole Warrant will
entitle the holder to acquire one Common Share at a price of $0.65
within 24 months of closing. Pursuant to the Agreement, the Underwriter
is entitled to substitute, prior to closing, purchasers who are
qualified to purchase the Units pursuant to applicable securities
legislation.

The net proceeds of the placement will be used to fund the Company's
exploration activities in Ghana and for general working capital
purposes. Closing is scheduled for April 10, 2005.

The Underwriter shall be entitled to receive a cash commission
representing 7% of the proceeds from the sale of the Units and
underwriter's warrants to acquire Common Shares, representing 8% of the
Units sold, at a price of $0.55 per Common Share within 24 months of
closing.

Birim Goldfields Inc. is a royalty-based exploration company and trades
on the Toronto Stock Exchange under the symbol BGI. There are presently
40.0 million shares outstanding.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Birim Goldfields Inc.
    Denis Simoneau
    President
    (514) 393-8611 or 1-800-721-8611
    (514) 393-1158 (FAX)
    info@birim.com
    www.birim.com