WINNIPEG, MANITOBA -- (Marketwire) -- 11/23/11 -- Gossan Resources Limited (TSX VENTURE: GSS)(FRANKFURT/FREIVERKEHR & XETRA:WKN 904435) closed the first tranche of a private placement of 2,695,000 Units, totaling $431,200 on November 22, 2011, subject to regulatory approval.
Gossan announced on October 24, 2011 that it is undertaking a non-brokered private placement of up to $860,000 of units (the 'Units'), subject to the approval of the TSX Venture Exchange. Each Unit consists of one common share and one common share purchase warrant at a price of $0.16 per Unit. Each warrant entitles the holder thereof to purchase one additional common share of Gossan at an exercise price of $0.24 per share during the period ending November 29, 2013.
All securities issued in the course of the Offering will be subject to a regulatory hold period of four months and one day, and a voluntary hold period for a further 8 months or one year in total. Insiders of the Company may subscribe for in excess of 25% of the aggregate proceeds of the contemplated private placement. The principals of East Mining Company ('EMC'), a venture in which Gossan has the right to become a shareholder of, may also subscribe to the contemplated private placement (NR-11-05 dated October 24, 2011). No fees have been paid or are anticipated to be paid in regard to the placement of the issue. Proceeds of the Units may be used to complete a proposed investment in East Mining Company and will be used for general working capital purposes. The private placement may be closed in two or more tranches.
In the first tranche of the private placement, insiders acquired 382,500 Units for a total of $61,200. No fees were paid pertaining to the placement of the first tranche.
Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, vanadium, titanium, tantalum, lithium, and chromium. The Company also has a large deposit of magnesium-rich dolomite, the world-wide rights to the Zuliani magnesium production process, and a silica sand deposit. Gossan trades on the TSX Venture Exchange and, after the closing of the first tranche of the private placement as set out above, has 31,972,900 common shares outstanding.
For further information, please bookmark www.gossan.ca.
Neither 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 news release.
Contacts:
Gossan Resources Limited
Douglas Reeson
CEO
(416) 533-9664
info@gossan.ca
www.gossan.ca
