Greystar Resources Ltd.

Greystar Resources Ltd.

October 19, 2009 02:00 ET

Greystar Resources Announces Intent to Apply for a Secondary Listing in Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Oct. 19, 2009) - Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) is pleased to announce that it has appointed Citivalores S.A. Sociedad Comisionista de Bolsa in Colombia to advise the Company on the listing of its shares on the "RNVE", the Registro Nacional de Valores y Emisores in Colombia, as well as on the "BVC", the Bolsa de Valores de Colombia. Both listings will qualify as secondary listings, and the Company's primary exchange will remain the Toronto Stock Exchange. The Company shall also retain its listing on AIM.

If these applications are accepted, the dual listings will enable the Company to expand its institutional and retail shareholder base in Colombia where it is developing its Angostura gold-silver deposit. The Company does not anticipate making an offering in conjunction with these listings and therefore there will be no dilution to existing shareholders.

David Rovig, Chief Executive Officer, commented: "We believe that this listing is important, as it will allow Colombians to participate in the development of the multi-million ounce Angostura gold and silver deposit. It is our hope that pension funds and individual investors in Colombia will see an investment in Greystar as an opportunity to support their own economy through the responsible development of the country's natural resources."

The listing on the BVC will be subject to the local regulations applicable to foreign issuers, issued by the Superintendencia Financiera de Colombia, BVC, Central Depository System (DECEVAL) as well as any other regulation or authority that should apply to this transaction. The application process is expected to take approximately three months, following the completion of all regulatory steps. All reporting and disclosure regulations, including corporate governance, voting rights and proxy voting will be in accordance with Canadian and Colombian regulations, as applicable to foreign investors.

Greystar Resources will appoint a depository agent in Colombia to maintain shareholder records and this agent will be responsible for dividend payments, if any, and all other matters regarding shareholder rights, as determined by the company's shareholders.

About Greystar Resources Ltd.

Greystar Resources Ltd. is a precious metals exploration and development company that is currently completing a feasibility study on its wholly owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia. A positive prefeasibility study announced on March 25, 2009 envisions average annual production at Angostura of 511,000 ounces of gold and 2.3 million ounces of silver over a 15 year mine life.

Forward-Looking Statements

Certain statements in this press release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding the intention to make application to list the Company's shares on the RNVE and BVC, the time required to complete such applications, the anticipated effect of such listings, anticipated annual production and estimated mineral resources. 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, the Company's ability to meet listing requirements, conclusions or realization of mineral resources, the actual results of exploration activities, possible variations in ore grade or recovery rates, fluctuations in the price of gold and silver, 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 Company's final short form prospectus dated September 22, 2009 which is available on SEDAR at Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

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
    Geoff Chater
    VP Corporate Development
    (604) 614-7830
    Greystar Resources Ltd. - Contact in Canada
    Mr. Andreas Curkovic
    Investor Relations
    (416) 577-9927
    NCB Stockbrokers Limited - Contact in London
    Christopher Caldwell
    +44 (0) 20 7071 5200