Private Placement Closing And Business Divestiture
Further
to its news release of July 25, 2008, Garibaldi Resources Corp. (the
"Company") announces that it has closed its private placement following
the sale of 3,000,000 units of its securities at a price of $0.20 per
unit which raised $600,000 for the Company. Each unit consists of one
common share in the capital of the Company and one-half of a
non-transferable share purchase warrant with each whole warrant (the
"Warrant") entitling the holder to acquire one additional common share
of the Company at a price of $0.30 per share for two years.
In
conjunction with the placement, the Company has paid Bolder Investment
Partners Ltd. (“Bolder”) and LOM Nominees Limited (“LOM”) a finder’s
fee for the introduction of subscribers for the offering. Bolder
introduced Sprott Asset Management Inc. which subscribed for 2,500,000
units of the offering on behalf of funds it manages. For its role,
Bolder has been paid $40,000 in cash and has been issued 250,000
Finder’s Warrants. LOM introduced subscribers for 500,000 units of the
offering and has been paid $8,000 in cash and has been issued 20,000
Finder’s Warrants. Each Finder’s Warrant entitles the holder to acquire
one additional common share of the Company at a price of $0.30 for one
year. The
units, the Finder’s Warrants and any underlying shares are subject to a
hold period and may not be traded until December 14, 2008.
Meridian Stone Inc. Divestiture
The
divestiture of the Company's 85% interest in Meridian Stone Inc.
("Meridian") to Meridian's management team, also announced July 25,
2008, was made for nominal consideration. Meridian has
been in operation for three years and had failed to achieve
self-sufficiency in the agreed time frame. The divestiture includes the
assignment to the purchasers of the Company's shareholder loan of
approximately $700,000 due from Meridian in consideration of the
contingent payment of up to $200,000 to the Company should the
purchasers realize net profits on the exercise of options held by them
in the Company prior to their expiry in 2010. The divestiture allows
the Company to focus its efforts fully on its mineral resource
exploration activities.
GARIBALDI RESOURCES CORP.
per: "Steve Regoci"
Steve Regoci, President
