Great Panther Resources Limited

Great Panther Resources Limited

July 04, 2007 15:06 ET

Great Panther to Raise $4.05 Million Through Convertible Loan Notes With Two British Isles-Based Funds

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 4, 2007) - GREAT PANTHER RESOURCES LIMITED (TSX:GPR) ("the Company") is raising $4.05 million through the private placement of two Convertible Loan Notes, each of $2,025,000 with City Natural Resources High Yield Trust PLC and New City High Yield Fund Limited of the British Isles. The Notes will bear interest at 8% per annum, payable quarterly, and will mature in 4 years. The Notes will be convertible at the option of the holders into common shares of the Company at the conversion price of $2.25 per share, which is an approximate 25% premium to the market price of the Company's common shares when the decision to enter into the agreements was made.

The proceeds from the Notes will be used to accelerate exploration activities at the Mapimi Project in Durango, Mexico where geophysical surveys are outlining several large areas interpreted as buried sulphide mineralization worthy of drill testing; a deep drilling program at the Guanajuato Mine; and for working capital to increase production at the Company's Guanajuato and Topia Mines.

The Notes and the 1.8 million common shares issued on conversion will be subject to hold periods expiring 4 months plus one day from the date of the Notes. No commissions or finder's fees are payable. The private placement is subject to acceptance for filing by the TSX.


Kaare G. Foy, Executive Chairman

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2006 and reports on Form 6-K filed with the Securities and Exchange Commission and available at and Material Change Reports filed with the Canadian Securities Administrators and available at

SEC 20-F Statement Filed; Standard & Poor's Listed

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