Golden Sunset Trail Inc.
TSX VENTURE : GST

May 07, 2008 17:23 ET

Golden Sunset Trail Inc. Announces Prospectus Offering of Units

GRIMSBY, ONTARIO--(Marketwire - May 7, 2008) - GOLDEN SUNSET TRAIL INC. ("Golden Sunset") (TSX VENTURE:GST) is pleased to announce that it has entered into an engagement agreement with Raymond James Ltd. (the "Agent") in connection with a proposed financing to be conducted by way of long form prospectus (the "Financing") for a minimum of $3 million and a maximum of $5 million in gross proceeds. The Financing will be comprised of units (the "Units") issued at a price of $0.25 per Unit. Each Unit will be comprised of one common share (a "Common Share") and one-half common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.35 for a period of 18 months following closing of the Financing, subject to an accelerated expiry date on 21 days' notice should the Common Shares trade at an average of $0.50 or above for twenty consecutive trading days on the TSX Venture Exchange (the "Exchange"). Golden Sunset will also grant to the Agent an over-allotment option to sell up to 3,000,000 additional Units.

As consideration for their services in connection with the Financing, the Agent is entitled to receive an agency fee of $40,000 (plus GST), a selling commission of 10% of the gross proceeds of the Financing, other than with respect to proceeds raised from those subscribers listed on the President's list, for which the Agent will receive a commission of 6%. The Agent will also receive an agent's option permitting the Agent to purchase Units representing a number equal to 10% of the Units issued pursuant to the Financing at a price of $0.25 for a period of 18 months following closing of the Financing, subject to an accelerated expiry date on 21 days' notice should the Common Shares trade at an average of $0.50 or above for twenty consecutive trading days on the Exchange.

The closing of the Financing is expected to occur on or about June 30, 2008 and is subject to receipt of normal course regulatory approvals. The net proceeds of the Financing will be used to fund Golden Sunset's reopening, exploration, and development of the Mayflower Mine.

The Exchange has not passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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

Contact Information

  • Golden Sunset Trail Inc.
    Daniel Donn
    President & CEO and Director
    (905) 945-3999
    Email: danieldonn@cogeco.ca