Great Panther Resources Limited

Great Panther Resources Limited

July 20, 2005 19:17 ET

New Brokered Private Placement; Great Panther Appoints Union Securities for $4.5 Million Financing; Signs Letter of Intent for Guanajuato Mines

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 20, 2005) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce the appointment of Union Securities Ltd. ("Union") to act as its agent, on a commercially reasonable best efforts basis, to offer, by way of a brokered private placement, up to 10,000,000 units at a price of $0.45 per unit for gross proceeds of up to $4,500,000 (the "brokered offering").

This brokered offering is in addition to and is not to be confused with the non-brokered private placement, the final closing of which was announced by Great Panther on July 19, 2005.

Each unit of the brokered offering will consist of one common share of Great Panther and one-half of one transferable share purchase warrant. One whole warrant will entitle the holder to acquire, upon exercise, one common share of Great Panther for a period of 12 months from the date of closing of the brokered offering at a price of $0.62. Great Panther has agreed to grant to Union an over-allotment option to purchase up to an additional 1,500,000 units to cover potential oversubscription of the brokered offering.

In consideration for its services as agent, Union will be paid a commission equal to 8% of the gross proceeds, payable in cash. In addition, Union will receive agent's options to acquire that number of units as is equal to 10% of the number of units sold and purchased under the brokered offering and over-allotment option. The agent's options are exercisable for a period of 12 months from the date of closing of the brokered offering at a price of $0.45 per unit. Each unit will consist of one common share of Great Panther and one-half of one non-transferable warrant on terms identical to the private placement warrants. Great Panther has paid Union a work fee and has agreed to pay certain expenses reasonably incurred by Union in connection with the financing.

The net financing proceeds will be used to cover rehabilitation and start-up costs at Great Panther's Topia Silver-Lead-Zinc Mine in Durango State, for exploration activities on the Company's other projects, for corporate and administrative expenditures and for asset acquisition investigations. Great Panther is preparing to place the Topia Mine back into production and is exploring the Virimoa Gold Project in Durango and the San Antonio Gold-Copper Project in Chihuahua.

The brokered offering is subject to acceptance for filing by the TSX Venture Exchange.

Great Panther also announces that it has signed a Letter of Intent to acquire a 100% interest in a group of producing silver-gold mines in Guanajuato, Mexico. The total purchase price of this proposed acquisition is US$7,250,000. On signing the Letter of Intent, Great Panther paid US$125,000 to the vendors, a Mexican mining cooperative. A further payment of US$75,000 is called for on completion of a final inventory. Great Panther is currently conducting due diligence on the Guanajuato Mines project, which will be subject to filing with and acceptance by the TSX Venture Exchange. Upon the satisfactory completion of its due diligence, the Company anticipates the arrangement of a subsequent financing in order to initiate a series of payments for the balance of the purchase price commencing with the signing of a formal purchase agreement.


Robert A. Archer, P.Geo., President and CEO

SEC 20-F Statement Filed

Standard & Poor's Listed

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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