Golden Arrow Resources Corporation

Golden Arrow Resources Corporation

June 13, 2007 19:21 ET

Golden Arrow Resources Corporation: $7,000,000 Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2007) - Golden Arrow Resources Corporation (the "Company") (TSX VENTURE:GRG)(FRANKFURT:GAC) (WKN A0B6XQ) is pleased to announce that the non-brokered private placement announced on May 14, 2007, closed today, June 13, 2007, and has been oversubscribed by 1,188,000 units for a total of 5,688,000 units priced at $1.25 per unit, subject to regulatory approval. The total proceeds raised is $7,110,000.

Golden Arrow is in a strong financial position, and with the closing of this financing the Company will have approximately $8.5 million in the treasury. In addition to these funds, Golden Arrow holds a one percent (1%) uncapped Net Smelter Right(i) on Yamana Gold Inc.'s Gualcamayo discovery. The Gualcamayo is expected to go into production in Q3 2008 at a rate of 200,000 ounces per year and have a ten year mine revenue stream for Golden Arrow of over US$1,000,000 per year. Golden Arrow holds a highly prospective land position of over 20,000 hectares in close proximity to the Gualcamayo discovery.

Under the terms of the financing (announced May 14, 2007), each unit consists of one common share and one half of a common share purchase warrant and will be subject to a four-month hold period. Each full warrant will entitle the holder to purchase one common share in the capital of the Company, exercisable at a price of $1.50 during year one and $1.90 during year two. The issue will be subject to a six percent (6%) finders fee on part of the financing. With the closing of this financing, Golden Arrow will have approximately 15,500,000 shares outstanding.

President Joseph Grosso wishes to express his appreciation to the placees who, by participating in the private placement, have indicated their confidence in the caliber of Golden Arrow's projects and future potential.


Mr. Joseph Grosso, President & C.E.O.

(i) The Net Smelter Right is the amount of money that the smelter or refinery pays the mining operator for the mineral product and is usually based on a spot or current price of the mineral, with deductions for the costs associated with further processing.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information

  • Golden Arrow Resources Corporation
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828
    Golden Arrow Resources Corporation
    Sean Hurd
    V.P. Corporate Communications
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)