Greystar Resources Ltd.

Greystar Resources Ltd.

September 17, 2009 17:40 ET

Greystar Resources Ltd. Prices Previously Announced $55 Million Preliminary Short Form Prospectus Financing at C$3.50 Per Unit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2009) -


Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) (the "Company") announced today that the Company and Jennings Capital Inc., as Lead Agent, together with Scotia Capital Inc. and GMP Securities L.P. (collectively, the "Agents") and Numis Securities Limited, as special selling group member, have priced the best efforts offering of units ("Units") of the Company (the "Offering") contemplated by the Company's short form prospectus dated August 31, 2009. Pursuant to the pricing set by the Company and the Agents, the Company will offer up to 15,714,286 Units at a price of C$3.50 per Unit for gross proceeds of up to C$55 million.

Each Unit will consist 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 will entitle the holder to purchase one Common Share for a period of 12 months at a price of C$4.30 per share following the date of closing of the Offering. 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 warrantholders, to accelerate the expiry date of the Warrants to 20 business days following the date of such notice.

The Company anticipates filing the final prospectus in respect of the Offering shortly with closing expected to occur on or about September 29, 2009.

The Company has granted the Agents an option (the "Over-Allotment Option"), exercisable by the Agents in whole or in part at their sole discretion at any time until 30 days following the date of closing of the Offering, to sell up to an additional 2,357,143 Units on the same terms as set out above to cover over-allotments, if any, and for market stabilization purposes.

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 completion of the Offering, exercise of the Over-Allotment Option the use of proceeds of the proposed financing, anticipated annual production, estimated net present value and internal rate of return 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 Preliminary Prospectus which is available on SEDAR at In addition, there is no assurance that the Offering will close on the proposed terms or at all or that the necessary approvals will be obtained, in which case the Company may be required to adjust its plans and/or seek financing from other sources. 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.
    David B. Rovig
    (406) 245-9520
    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