Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

March 20, 2009 18:54 ET

Greystar Announces Completion of International Finance Corporation Investment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2009) -

NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Greystar Resources Ltd. ("Greystar" or the "Company") (TSX:GSL)(AIM:GSL) is pleased to announce the successful completion of the investment in the Company by IFC (International Finance Corporation), the member of the World Bank Group focused on private sector investments, for 6,579,161 units at a price of C$1.83 per unit for gross proceeds of C$12,039,864, previously announced in the Company's February 4, 2009 and March 16, 2009 news releases.

Each unit consists of one common share and three-quarters of a transferable common share purchase warrant. A total of 6,579,161 common shares and 4,934,371 warrants were issued to IFC at closing. Subject to the acceleration rights described in the Company's March 16, 2009 news release, each whole warrant will entitle the holder to purchase one common share at a price of C$2.47 per share for a period of five years from the closing date.

Application will now be made to the Alternative Investment Market (AIM) of the London Stock Exchange for the common shares issued on closing to be admitted for trading and for the common shares to be issued on the exercise of the warrants to be added to the Company's existing block listing. The common shares and warrants issued to IFC are subject to Canadian resale restrictions, which expire on July 21, 2009.

The proceeds of the proposed financing will be used to advance the pre-development stage of the Company's Angostura gold-silver project in northeastern Colombia.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.

About Greystar Resources Ltd.

Greystar Resources Ltd. is a Canadian mining company dedicated to the exploration, development and, when appropriate, the exploitation of precious metal resources. At the present time, its multi-million ounce Angostura gold-silver project in the northeastern region of Colombia is being advanced through the Feasibility Study stage.

Based on the December 2008, resource update estimation, the Angostura deposit hosts a measured resource of 148.9 million tonnes grading 0.78 gram gold for 3.736 million contained ounces of gold; an indicated resource of 182 million tonnes grading 1.34 grams gold for 7.813 million contained ounces of gold. Combined, the measured and indicated resources host 11.5 million ounces of gold in 330.9 million tonnes of material grading 1.09 grams gold per tonne, plus an inferred resource of 3.472 million ounces of gold in 90.8 million tonnes grading 1.19 grams gold per tonne. Resource estimation was undertaken in compliance with CIM mineral resource and mineral reserve definitions that are referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. A location map of the Angostura drilling, along with a map of the underground tunnel work and an updated concession map, can be accessed from the Company's home page link at Greystar's website.

Forward-Looking Statements

Certain statements in this press release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding the use of proceeds of the financing and estimates of mineral resources and anticipated grades. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, among others, conclusions or realization of mineral resources, the actual results of exploration activities, possible variations in ore grade or recovery rates, the costs and timing of the development of new deposits, risks relating to additional funding requirements, political and foreign risks, production risks, environmental regulation and liability, government regulation as well as other risk factors set out under the heading "Risk Factors" in the Annual Information Form of the Company dated March 25, 2008 which is available on SEDAR. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

This press release is not an offer of securities for sale or solicitation of an offer of securities for sale in the United States. The Company's securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, (the "US Securities Act") or state securities laws and may not be offered or sold in the United States or to US persons absent registration under the US Securities Act and state securities laws or applicable exemptions from the registration requirements of such laws.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Greystar Resources Ltd. - Contact in Canada
    Mr. David Rovig
    President
    (406) 245-9520
    or
    Greystar Resources Ltd. - Contact in Canada
    Mr. Andreas Curkovic
    Investor Relations
    (416) 577-9927
    Website: www.greystarresources.com
    or
    NCB Stockbrokers Limited - Contact in London
    Christopher Caldwell
    +44 (0) 20 7071 5200
    Email: Christopher.Caldwell@ncb.ie