Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

November 08, 2005 11:01 ET

Golden Valley Mines: Over CDN$1.3 Million Raised from the Closing of Two Offerings

MONTREAL, QUEBEC--(CCNMatthews - Nov. 8, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has closed two separate offerings totaling $1,318,950 in gross proceeds through the issuance of 4,396,500 units at a price of $0.30 per unit. Each unit consists of one common share and one half of a warrant. Each whole warrant entitles the holder to acquire one common share of the Corporation at a price of $0.35 for a period of 12 months, and thereafter at a price of $0.40, expiring 24 months from closing.

A total of 3,896,500 units were issued to Blackmont Capital Corp. and Canaccord Capital Corp. for gross proceeds of $1,168,950 pursuant to a brokered Short Form Offering Document in British Columbia and Alberta, and by way of a private placement in Ontario. Blackmont and Canaccord acted as agents with respect to this financing and received a commission equal to 8% of the gross proceeds raised, a corporate finance fee of $25 000 (plus GST), a portion of which was satisfied by the issuance of 44,583 units, and 584,475 Agent's Warrants. Each Agent's Warrant is exerciseable at a price of $0.30 for a period of 12 months from closing and thereafter at a price of $0.35 for an additional 12 months.

Additionally, and given that the Corporation is becoming more active on its James Bay properties, the Corporation issued 500,000 units to Societe de Developpement de la Baie James (the "SDBJ"), for gross proceeds of $150,000. The funds will be allocated to the completion of the Corporation's 2005 ground reconnaissance program in James Bay, and to the planning of the Corporation's Phase II 2006 James Bay program. SDBJ's mission is to favour the economic development in the James Bay region, as defined between the 49th and the 55th northern parallel. The SDBJ relies on an investment fund, part of which is devoted to the financing of junior exploration companies, as a contribution to the renewal of mineral resources and to an increase in total exploration expenditures in the James Bay region. Golden Valley paid an administrative fee to SDBJ equal to 2% of the gross proceeds raised (totaling $3,450.75 inclusive of taxes).

The securities issued pursuant to the SDBJ private placement, plus those issued by way of private placement in Ontario and to certain restricted purchasers under the Short Form Offering Document, are subject to a hold period of four months and one day from the date of closing.

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

Contact Information