GGL announces increase in non-brokered flow-through private placement to $4,004,500
Vancouver, British Columbia, December 12, 2007 ¾ Raymond A. Hrkac, President and CEO of GGL Diamond Corp.(TSXV: GGL) (“GGL”) is pleased to announce that GGL has increased the amount of the non-brokered private placement of flow-through shares previously announced on November 23, 2007 from a total of $2,500,000 to a new maximum of $4,004,500 at $0.25 per share for a maximum of 16,018,000 flow-through shares.
Up to $2,842,000 of the gross proceeds will be allocated to projects in the Northwest Territories, with the majority to be spent on the nickel project and a portion on diamond projects. On the nickel project, GGL intends to expand the 3D airborne and ground geophysics work needed on the Providence Greenstone Belt, take additional samples as needed, identify and prioritize drill targets, and drill. GGL will also undertake additional work on its diamond properties, as required to fulfill its regulatory obligations.
Up to $1,162,500 of the gross proceeds will be allocated to further explore GGL’s copper-gold prospect at McConnell Creek in British Columbia. The increase in the amount of funds allocated to this project will now enable GGL to implement all stages of the recommendations of the NI 43-101 technical report on this property (see press release of September 4, 2007), add detail to the geophysical survey and do more drilling.
The Company will incur the subscription proceeds allocated to the flow-through shares as Canadian exploration expense, as defined in the Income Tax Act of Canada, and renounce such proceeds to the subscribers effective for the 2007 tax year.
Regulatory Approval/Closing
The private placement is subject to acceptance for filing by the TSX Venture Exchange and is expected to close no later than December 21, 2007.
The Company will pay up to an 8% finder’s fee for certain subscribers to the private placement, in cash or the share equivalent.
GGL DIAMOND CORP.
“Raymond A. Hrkac”
Raymond A. Hrkac President & CEO
For further information, please contact: Susan de Stein, VP, GGL Diamond Corp.
Phone: (604) 688-0546 Email: susan.de.stein@ggldiamond.ca
For more information, please check our web site at www.ggldiamond.com. |