Guide Exploration Ltd.

November 04, 2011 10:59 ET

Guide Exploration Ltd. Announces Increase to Brokered Offering from $15 Million to $20 Million

CALGARY, ALBERTA--(Marketwire - Nov. 4, 2011) -


Guide Exploration Ltd. (TSX:GO) ("Guide" or the "Corporation") is pleased to announce that, in connection with its previously announced bought deal offering of common shares ("Brokered Offering") on a Canadian Exploration Expense ("CEE") flow through basis ("CEE Flow Through Common Shares"), the Corporation and the syndicate of underwriters co-led by National Bank Financial Inc. and Cormark Securities Inc. and including FirstEnergy Capital Corp., Peters & Co. Limited and Scotia Capital Inc. has agreed to increase the size of the Brokered Offering to an aggregate of 5,634,000 Flow Through Common Shares at a price of $3.55 per CEE Flow Through Common Share for aggregate gross proceeds of $20,000,700 (the "Brokered Offering"). With the increase in size to the Brokered Offering, the Brokered Offering no longer includes an over-allotment option.

Closing of the Brokered Offering is expected to occur on November 24, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Including the previously announced non-brokered offering (collectively with the Brokered Offering, the "Offerings"), the combined proceeds of the Offerings is $25,000,702. Proceeds of the Offerings will be used to incur eligible CEE and CDE expenses, as applicable, on the Corporation's properties. These qualifying expenditures will be renounced in favour of subscribers for the 2011 tax year.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ADVISORY: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing dates of the Offerings and the anticipated use of the net proceeds of the Offerings and the renunciation of certain expenses to subscribers under the Offerings. Although Guide believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Guide can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offerings could be delayed if Guide is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offerings by Guide might change if the board of directors of Guide determines that it would be in the best interests of Guide to deploy the proceeds for some other purpose, such as an acquisition. The forward looking statements contained in this press release are made as of the date hereof and Guide undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Guide Exploration Ltd.
    William E. Andrew
    Executive Chairman
    (403) 261-6012

    Guide Exploration Ltd.
    Dale A. Miller
    (403) 261-6012

    Guide Exploration Ltd.
    Shivon Crabtree
    Vice President and Chief Financial Officer
    (403) 261-6012