Grandview Gold Inc.
CNQ : GVGI

Grandview Gold Inc.

August 08, 2005 14:04 ET

Grandview Gold Inc. Announces $4.0 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES NOR FOR DESSIMINATION IN THE UNITED STATES

Grandview Gold Inc. (CNQ:GVGI) ("Grandview Gold" or the "Company") - is pleased to announce, subject to regulatory approval, a private placement on a "best efforts" basis of up to 1,600,000 units (the "Units") and up to 1,600,000 flow-through shares (the "Flow-through Shares") (collectively, the "Securities"). Haywood Securities Inc. is leading a syndicate, which includes Coniston Investment Corp. (collectively the "Agents").

Each Unit and each Flow-through Share will be priced at $1.25. Each Unit will consist of one common share (the "Shares") and one-half of one common share purchase warrant (the "Warrants") of the Company. Each whole Warrant shall be exercisable to acquire one Share at an exercise price of C$1.75 for a period of 12 months from closing.

The proceeds from the Unit offering will be used for the further exploration of the Company's Pony Creek/Elliott Dome property on the Carlin Trend in Nevada, U.S.A. This will include completion of the current drill program, preparation of a preliminary assessment report, property payments as well as for general corporate purposes and working capital. The proceeds from the Flow-through Shares offering will be used for exploration and development of the Company's Canadian properties.

The agents have been granted an option, exercisable up to 48 hours before closing, to increase the size of the offering by up to an additional $1.0 million of flow-through shares and up to $0.5 million of units. In consideration for its services, the agents will receive a cash commission of 8.0% of the gross proceeds from the sale of the securities and will be issued compensation options to purchase Units equal to 10.0% of the number of Securities sold.

These securities have not been and will not be registered under the United States Securities Act of 1933 (the "US Securities Act"), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.

Grandview Gold Inc. is a gold exploration company, listed on the CNQ Exchange under the symbol "GVGI". Grandview Gold focuses on creating value for shareholders by exploring and developing high-grade gold properties in the major gold camps of North America. Details of Grandview Gold's projects are available on the Company's website at www.grandviewgold.com.

This news release contains forward-looking statements regarding the timing and content of upcoming programs and may be subject to regulatory approval. Actual results may differ materially from those currently anticipated in such statements.

Contact Information

  • Grandview Gold Inc.
    Raymond Pecoskie
    President & CEO
    (416) 409-8245
    info@grandviewgold.com
    Suite 400, 56 Temperance Street, Toronto, ON, Canada, M5H3V5