Grand Banks Energy Corporation
TSX VENTURE : GBE

Grand Banks Energy Corporation

October 13, 2006 08:00 ET

Grand Banks Energy Corporation Announces Flow Through Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2006) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES.

Grand Banks Energy Corporation (the "Company") (TSX VENTURE:GBE) is pleased to announce that it intends to conduct a private placement of up to 2.0 million common shares issued on a "flow-through" basis at a price of $2.10 per share, for gross proceeds of up to $4.2 million. A cash commission of 5% may be paid to arm's length third parties in respect of some subscriptions. The private placement may be completed with multiple closings.

The proceeds of the private placement will be used to incur eligible Canadian Exploration Expenses ("CEE") which will be renounced in favor of subscribers for the 2006 taxation year.

This offering is subject to the approval of the TSX-Venture Exchange.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

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

Contact Information

  • Grand Banks Energy Corporation
    E.C. (Ted) McFeely
    Chairman, President and Chief Executive Officer
    (403) 262-8666
    or
    Grand Banks Energy Corporation
    1600, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8
    (403) 262-8666
    (403) 262-8796 (FAX)