Goldeye Explorations Limited
TSX VENTURE : GGY

Goldeye Explorations Limited

September 28, 2010 19:24 ET

Goldeye Increases Brokered Private Placement to $4,182,500

TORONTO, CANADA--(Marketwire - Sept. 28, 2010) - Goldeye Explorations Limited ("Goldeye") (TSX VENTURE:GGY) announced on September 16, 2010 that Goldeye and Pope & Company Limited (the "Agent") had agreed to increase the size of its brokered private placement previously announced on September 14, 2010, from approximately $1,500,000 to approximately $4,000,000. Goldeye announced today that the transaction is scheduled to close on September 29, 2010 with total proceeds of $4,182,500.

As previously announced, the offering consists of a combination of flow-through units and non-flow-through units at a price of $0.10 per unit. Each non-flow-through unit consists of one common share and one common share purchase warrant, exercisable at a price of $0.125 for two years. Each flow-through unit consists of one flow-through common share and one-half of a common share purchase warrant, with a full warrant being exercisable at a price of $0.15 for two years. The securities are subject to a four month hold period. The final proceeds will consist of $2,400,500 of non-flow-through units and $1,782,000 of flow-through units. A commission of 8% of the cash proceeds will be paid to the Agent as well as Agent's warrant units equal to 10% of the number of units sold.

The proceeds of the flow-through financing will be used for mineral exploration, predominantly on Goldeye's Tyrrell Property in the Shining Tree area of Ontario. The expenditures will qualify as Canadian Exploration Expense (CEE) under the Income Tax Act (Canada), enabling the subscribers to obtain applicable tax credits and deductions. The proceeds of the non-flow-through financing will be used for general and administrative purposes and to finance mineral exploration on Goldeye's mineral exploration properties.

Goldeye is predominantly pursuing gold exploration on its Tyrrell property in the Shining Tree area of Ontario. Goldeye's property consists of a 100% interest in 30 square kilometres. Exploration will also be completed by Goldeye's joint venture partners on:

  • the contiguous Temex-Juby JV ground where Goldeye's interest is 40 per cent of 22 square kilometres (immediately adjacent to Temex Resources Corp.'s 1.2 million ounce Juby Gold Project);and
  • the contiguous Creso-Athena option where Goldeye will retain a minimum 25-per-cent interest carried to production in 4.6 square kilometres (immediately adjacent to Creso Explorations Inc.'s recent Minto gold discovery).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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