Golden Hope Mines Limited
TSX VENTURE : GNH
PINK SHEETS : GOLHF

Golden Hope Mines Limited

December 07, 2006 07:00 ET

Golden Hope Mines Closes $4.2 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Golden Hope Mines Limited (the "Company")(TSX VENTURE:GNH)(PINK SHEETS:GOLHF) is pleased to announce that it has closed its private placement offering pursuant to which the Company sold an aggregate of 4,000,000 Units ("Units") at a price of $0.55 per Unit and 3,333,333 Flow-Through Shares ("Flow-Through Shares") in the capital of the Company at a price of $0.60 per Flow-Through Share for total gross proceeds to the Company of $4.2 million. The offering was co-led by Sprott Securities Inc. and Dundee Securities Corporation. Each Unit consists of one common share and one half of a share purchase warrant. Each whole share purchase warrant shall entitle the warrant holder to acquire an additional common share at an exercise price of $0.75, for a period of 18 months after closing. The Agents received on closing a cash commission equal to 6% of the gross proceeds and compensation warrants to acquire 240,000 common shares at an exercise price of $0.55, for a period of 12 months. All securities issued pursuant to the financing are subject to a four-month hold period.

The Company will use the net proceeds from the sale of the Flow-Through Shares to pay exploration expenses on the Company's Bellechasse Gold Project, which qualify as Canadian Exploration Expenses (as such term is defined in the Income Tax Act (Canada)) and which will qualify as Flow-Through Mining Expenditures (as such term is defined in the Income Tax Act (Canada)). The Company will use the net proceeds from the sale of the Units for additional exploration and general corporate purposes.

ON BEHALF OF THE BOARD

"Theodore Polisuk"

THEODORE POLISUK, President

S.E.C. Exemption: 12(g)3-2(b)

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

Contact Information

  • Golden Hope Mines Limited
    Peter H. Smith Ph.D., P.Eng
    (514) 481-3172
    or
    Golden Hope Mines Limited
    Louis Hoel
    (416) 521-6362
    Website: www.goldenhopemines.com