SOURCE: Grenville Gold Corporation

May 03, 2007 09:15 ET

Grenville Announces $4 Million Firm Underwriting Financing

VANCOUVER, BC -- (MARKET WIRE) -- May 3, 2007 -- Grenville Gold Corporation ("Grenville" or "the Company") (TSX-V: GVG) is pleased to announce the Company has engaged Northern Securities Inc. ("the Underwriter") to sell on a firm commitment basis by way of a private placement, 6,666,667 units of the Company at an offering price of $0.60 per unit, for total gross proceeds of up to CDN $4,000,000.

Each Unit offered consists of one common share and one common share purchase warrant ("Warrant"). Each Warrant is exercisable into one common share for a period of up to twenty-four (24) months from the date of closing at an exercise price of $0.80. If, after eight months from the closing date of this offering, the Company's market price per common share trades at or above $1.30 for twenty (20) consecutive days, then the Company may on public notice, reduce the remaining exercise period on the share purchase warrants to not less than 30 days from the date of such notice.

In addition, Grenville has granted the Underwriter an over-allotment option to purchase up to an additional 3,333,333 units for gross proceeds of $2,000,000 at the unit issue price. The over-allotment may be exercised within sixty days of closing.

A cash commission of 8% of the aggregate gross proceeds of the Offering will be payable at closing to the Underwriter and/or to any member participating in an underwriting syndicate arranged by the Underwriter. The Company will issue to the Underwriter at closing, Broker Warrants equal to 8% of the Units sold pursuant to the Offering. Each broker warrant will be exercisable into one unit at the Unit Issue Price of $0.60 per unit at any time prior to the date that is 24 months from closing. The closing of the offering is set to occur on or before May 31, 2007 or other such date agreed to by Northern and the Company. The offering is also subject to certain closing conditions including receipt of all necessary regulatory approvals. At closing, funds are to be released to the Corporation net of the costs associated with the offering, including commission costs and legal expenses.

The units issued pursuant to the offering will be subject to a hold period of four months and one day from the closing date.

The proceeds of the proposed offering will be used towards the exploration and development of the Company's Ecuador and Peru properties, general reserves for future acquisitions and for general working capital.

This transaction is subject to final documentation and approval of the TSX Venture Exchange.

About Grenville Gold Corporation

Grenville Gold (www.grenvillegold.com) is a junior resource company seeking prospective properties in Peru and Ecuador. The company has three subsidiaries: Inversiones Mineras Alexander S.A.C. in Peru, Minera MineGreville S.A. in Ecuador and Parkman Diamond Corp. in Ontario, Canada. Grenville Gold plans to leverage the experience of its Board and Management in exploration and mining to develop its growth strategy in North and South America.

On behalf of the Board of Directors,

"A. Paul Gill"
 President & CEO

Ph. 604-669-8842
info@grenvillegold.com
We Seek Safe Harbour

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.

Contact Information