Uragold Bay Resources Inc.

Uragold Bay Resources Inc.

December 03, 2010 10:01 ET

Uragold Bay New Flow-Through Units Offering Announced

MONTREAL, QUEBEC--(Marketwire - Dec. 3, 2010) - Uragold Bay Resources Inc. (TSX VENTURE:UBR), has entered into an agreement with Jones, Gable & Company Limited ("Jones, Gable") in respect of a brokered private placement financing consisting of up to 1,250 flow-through share units (the "Units") at a purchase price of $1,000 per Unit to raise total gross proceeds of up to $1,250,000 (the "Offering") on a commercially reasonable effort agency basis for accredited investors only.

The Units will consist of fifteen thousand (15,000) flow-through common shares at a price of $0.05 per share, five thousand (5,000) common shares at a price of $0.05 per share and twenty thousand (20,000) common share purchase warrants. Each whole warrant will entitle the holder to purchase one additional common share in the capital of the Company for a period of twenty four months from the date of closing of the placement, at a purchase price of $0.10 per share.

Proceeds of the flow-through shares will be used to incur general exploration expenses in Quebec. The expenses will constitute Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act (Canada), which can be renounced to purchasers for the 2010 taxation year.

Certain directors, officers and insiders of the Company may participate in the Offering. The securities issued will be subject to a hold period of four months and one day.

Proceeds of the placement will also be used for general working capital purposes and the development of the Company's Quebec based properties.

The placement will be subject to approval by the TSX Venture Exchange.

Bernard Tourillon, UBR Chairman and CEO comments: "This new broker private placement combined with the previously closed non-broker placement will give the Corporation the required liquidity for the aggressive development of the Corporation's prime properties."

About Uragold Bay Resources Inc.

Uragold Bay Resources is a junior exploration company trading on the TSX Venture Exchange under the symbol UBR. Uragold is a top claims holder in Southern Quebec's Appalachian belt. The properties benefit from extensive historical exploration work and from well-established infrastructure thereby helping to reduce exploration risks. Uragold's business model focuses on developing a series of potential small scale low-cost gold mining operations including the Beauce Placer, the Calway, the Riviére du Loup, Rivière Bergeron, and Grande Coulée for their potential in generating cash flow while simultaneously exploring core properties that hold the potential for the discovery of blue sky gold deposits like the MacDonald project.

The recent rise in Uranium prices combined with the discovery of Rare Earth Element deposits in the area close to Uskawanis, allows the Corporation to explore once again the potential of our James Bay projects.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Contact Information

  • Uragold Bay Resources Inc.
    Bernard J. Tourillon
    Chairman and CEO
    Toll-free 1-888-666-3431
    Uragold Bay Resources Inc.
    Patrick Levasseur
    President and COO
    Toll-free 1-888-666-3431