Golden Predator Announces Convertible Debenture Financing

Toronto, Ontario (FSCwire) - Golden Predator Mining Corp. (TSX.V: GPY) (the “Company” or “Golden Predator”) is pleased to announce a non-brokered private placement (the “Private Placement”) of up to C$800,000 of convertible debentures (the “Debentures”). The Debentures will carry a fixed rate of return of 20% (the “ROR”), be repayable in 12 months (the “Maturity Date”) and, following the Maturity Date, entitle holders to purchase 10% of any physical gold recovered from the Company’s planned bulk sampling program on its 3 Aces Project, Yukon at a price of C$500 per ounce or receive an equivalent payment in cash in lieu (the “Participation Right”).

The proceeds of the financing will be used to fund the bulk sampling program at the 3 Aces Project, which will be conducted by the Company under the Class 3 Permit issued by the Yukon Government (the “Permit”) announced June 22, 2015, and for general corporate and administrative purposes.

“The combination of the high grade occurrence at the 3 Aces project and this progressive financing is designed to advance the Company and the project. At the same time, pending a successful program, this also could provide for an opportunity for investors to participate in a gold stream of a limited duration,” said Janet Lee-Sheriff, Chief Executive Officer.

The Company may at any time before the Maturity Date and on a pro rata basis among the Debenture holders, prepay all or any portion of the principal and ROR in cash.  During the term of the Debentures, the Company will sell all, if any, gold recovered from the 3 Aces bulk sampling program and use 100% of any revenue derived from such sale to repay the principal and ROR to Debenture holders in cash.

Any amount of principal remaining due as at the Maturity Date will be paid by the Company in its common shares at a price equal to C$0.085 per share.  Any amount of ROR remaining due as at the Maturity Date will be paid by the Company in its common shares at a price equal to the greater of C$0.085 and the then market price of the Company’s shares on the TSX Venture Exchange.

At any time before the Maturity Date a Debenture holder may elect to have all or any portion of the ROR paid in common shares of the Company at a price equal to the greater of $0.085 and the market price of the Company’s shares on the TSX Venture Exchange at the time of the election.

Debenture holders may exercise their Participation Right commencing on the date on which the principal amount of the Debentures and ROR is repaid in full, and continuing until the maximum allowable sample has been recovered by the Company under the Permit.  During the term of the Participation Right, the Company will reserve for pro rata purchase by Debenture holders, as a group, 10% of any physical gold recovered from the 3Aces bulk sampling program conducted under the Permit at a price of C$500 per ounce. Each Debenture holder may elect to receive any gold to which it is entitled on the exercise of its Participation Right as cash in lieu.

The Private Placement remains subject to the approval of the TSX Venture Exchange.  The Company may pay cash commission or finder’s fees to eligible parties on a portion or all of the Private Placement, in accordance with the rules and policies of the TSX Venture Exchange. 

3 Aces Project, Yukon

The 3 Aces property consists of 1,108 contiguous quartz claims (23,000 hectares) located in southeast Yukon. The property is located along the Nahanni Range Road which accesses the operational Cantung Mine located 40 kilometres to the north.

The 3 Aces property contains a number of quartz veins and vein zones that cut Cambrian aged limestone, shale, quartz grits and pebble chert conglomerates of the Hyland Group. Previous sampling and exploration by Golden Predator (formerly Northern Tiger) has outlined extensive gold-in-soil anomalies over nine square kilometres, including numerous high grade gold showings.  

The 3 Aces property is located in the traditional territory of the Kaska Nation. In January 2013, Golden Predator signed an Exploration Agreement with the Kaska Nation, as represented by the Ross River Dena Council and the Liard First Nation, with respect to activities within their traditional territories.

The technical content of this news release has been reviewed and approved by Michael Maslowski BSc, CPG, a consultant to the Company and a Qualified Person as defined by National Instrument 43 101.

Golden Predator Mining Corp.

Golden Predator Mining Corp. holds the Brewery Creek project, a past producing heap leach gold mine with a preliminary economic assessment delivered in Q4 2014.  The Company also holds the 3 Aces gold project in the Yukon which it continues to delineate and test, and the Castle West project in Nevada.

For additional information:
Janet Lee-Sheriff
Chief Executive Officer
(778) 847-3351
info@goldenpredator.com
www.goldenpredator.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, the Company’s intended financing and the amount planned to be raised thereby, the Company’s intention to proceed with the bulk sampling program at the 3Aces Project under the Permit and the expectation that some physical gold will be recovered from the proposed bulk sampling program to fund repayment of the Debentures and the Participation Right. Often, but not always, forward-looking information statements can be identified by the use of words such as “proposes”, “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. The forward-looking statements made in this press release are based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, such as failure to obtain TSX Venture Exchange approval for the financing, failure to raise sufficient proceeds from the financing to fund the bulk sampling program, failure to recover any or sufficient amounts of gold from the program and other risks typical of any junior mineral exploration company as set forth in the Company’s Management Discussion & Analysis for the year ended December 31, 2014 filed on SEDAR. Actual results and future events could differ materially from those anticipated in such information. These statements are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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