Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

April 05, 2007 16:50 ET

Golden Valley Mines Ltd.: Closing of Private Placement With BearBeech Capital Partners Corp.

MONTREAL, QUEBEC--(CCNMatthews - April 5, 2007) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) is pleased to announce the closing of a private placement with BearBeech Capital Partners Corp. for gross proceeds of $1,999,800, as announced on March 5, 2007. Pursuant to the closing of the Offering, the Company issued 3,636,000 Units at a price of $0.55 per Unit. Each Unit is comprised of one common share of the Company and one-half of one whole share purchase warrant, wherein each full warrant entitles the holder to acquire one additional common share of the Company at a price of $0.70 (for 2 years).

The Offering was made to purchasers residing in the Provinces of, Ontario, and Quebec, in reliance upon applicable exemptions from registration and prospectus requirements. All of the securities issued pursuant to the Offering are subject to a hold period of four months and one day from the date hereof.

BearBeech received a cash commission equal to 8% of the gross proceeds raised, as well as an option to acquire 363,600 Units of the Company. Each Agent Option is exercisable at a price of $0.55 (for 2 years) and is comprised of one common share and one half of one whole share purchase warrant. The Agent's Warrants are exercisable on the same terms and conditions as the Warrants described above.

The funds raised pursuant to the private placement will be used by the Company to accelerate exploration, and for general corporate purposes.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority-owned grassroots projects. As of April 3, 2007, the Company holds majority property interests in 129 projects consisting of 3,834 mining titles (212,187 hectares) in Saskatchewan, Ontario and Quebec.

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

Contact Information