Golden Predator Corp
TSX : GPD

Golden Predator Corp

February 07, 2011 11:03 ET

Golden Predator Corp. Increases Previously Announced Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Golden Predator Corp. (TSX:GPD) (the "Company") is pleased to announce that it has amended the terms of its previously announced bought deal financing to increase the size of the offering from $15,006,000 to $19,800,000 . The Company has entered into an amended agreement with Dundee Securities Ltd. and Casimir Capital L.P. as co-lead underwriters (collectively, the "Underwriters") to purchase 9,000,000 units (the "Units") of the Company at a price of $0.75 per Unit and 14,500,000 flow-through common shares (the "Flow-Through Shares") at a price of $0.90 per Flow-Through Share for aggregate gross proceeds of $19,800,000. The Units consist of one common share ("Share") and one half of one transferable common share purchase warrant of the Company ("Warrant") with each whole Warrant exercisable into one common share of the Company at a price of $1.10 for a period of 18 months following the closing.

The Underwriters also have the option to purchase up to an additional 15% of the Flow-Through Shares and Units at any time up to 48 hours prior to the closing date. The gross proceeds of the Flow-Through Shares shall be used for exploration on the Company's Canadian projects and the net proceeds of the Units shall be used for general corporate purposes. With respect to the Flow-Through Shares, the Company will renounce Canadian Exploration Expenses with an effective date of no later than December 31, 2011.

As consideration to the Underwriters, the Company has agreed to pay a commission of 6.0% of the gross proceeds of the sale of the Flow-Through Shares and Units and issue warrants ("Underwriters' Warrants") equal to 6.0% of the Units issued pursuant to the private placement. Each Underwriters' Warrant entitles the holder, on exercise, to purchase one additional common share of the Company at a price of $1.10 for a period of 18 months from the completion of the private placement.

All securities issued in connection with the private placement will be subject to a minimum four month hold period. The private placement is subject to all required approvals, including the approval of the Toronto Stock Exchange.

About Golden Predator Corp.

Golden Predator Corp.'s corporate mandate is to be the leading gold property explorer and developer in Yukon, Canada. The Company has an extensive Yukon property position with three advanced gold projects and a pipeline of 6 prospects as well as an extensive exploration landholding comprising approximately 1,800 km2. Winter drilling will commence during February 2011 on Grew Creek and Brewery Creek. In 2011, the Company will continue aggressive drill programs and work towards completing initial 43-101 resources for Grew Creek and Clear Creek and updating the existing 43-101 resource for Brewery Creek.

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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