Greystar Resources Ltd.

Greystar Resources Ltd.

September 29, 2009 09:24 ET

Greystar Resources Ltd. Closes C$63,250,000 Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2009) -


Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) is pleased to report that it has closed the previously announced best efforts public offering (the "Offering") of units of the Company (the "Units") at a price of C$3.50 per Unit. The Company filed a final short form prospectus with the securities regulatory authorities in the Provinces of British Columbia, Alberta, Ontario and Nova Scotia in connection with the Offering on September 22, 2009. With the exercise in full of the over-allotment option, a total of 18,071,429 units were issued for gross proceeds of C$63,250,001.50.

Each Unit consists of one common share of the Company (a "Common Share") and one-half of one transferable common share purchase warrant (a "Warrant"). Subject to the acceleration right described below, each whole Warrant entitles the holder to purchase one Common Share on or before September 29, 2010 at a price of C$4.30 per share. If, at any time, the closing price of the Common Shares on the Toronto Stock Exchange is greater than C$5.00 for 20 or more consecutive trading days, the Company has the right, on notice to the warrant holders within five business days of such event, to accelerate the expiry date of the Warrants to 20 business days following the date of such notice.

The Offering was led by Jennings Capital Inc. with a syndicate comprising Scotia Capital Inc. and GMP Securities L.P. (collectively, the "Agents") with Numis Securities Limited as special selling group member. The Agents' compensation consisted of a cash commission equal to 5% of the gross proceeds of the Offering and the issuance of 903,571 warrants. Each such warrant will entitle the Agents to acquire one Unit at a price of C$3.50 per Unit on or before September 29, 2010.

The net proceeds of the Offering will be used to advance the Company's Angostura Gold-Silver Project, including completion of phase two of the definitive feasibility study, initial design, further exploration and for working capital purposes.

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.

This press release is not an offer of securities for sale or solicitation of an offer of securities for sale in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. 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.

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 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, 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. - Canada
    Mr. David Rovig
    (406) 245-9520
    Greystar Resources Ltd. - Canada
    Mr. Andreas Curkovic
    Investor Relations
    (416) 577-9927
    NCB Stockbrokers Limited - London
    Christopher Caldwell
    +44 (0) 20 7071 5200