Golden Dory to Receive $1 Million Investment from Callinan Royalties Corporation; Grants Options to Buy Royalties at its Iron Horse Project; Labrador
(via Thenewswire.ca)
GANDER, NEWFOUNDLAND - November 8, 2012 - Golden Dory Resources Corp. ("Golden Dory" or the "Company") is pleased to announce that it has entered into an agreement with Callinan Royalties Corporation. ("Callinan") whereby Callinan will invest $1 million in Golden Dory through a private placement financing (the "Investment") and, concurrent with the closing of the financing, Callinan will acquire two royalty options from Golden Dory on the Iron Horse Property (formerly Gabbro Lake) owned by the Golden Dory/Metals Creek Joint Venture.
The Investment will consist of 14,285,714 units (the "Units") at $0.07 per Unit, each Unit to be comprised of one common share and one warrant (each a "Warrant") exercisable to acquire a further common share of Golden Dory at a price of $0.10 for a period of two years from the date of issuance of the Warrants. However, Golden Dory will not issue, during the term of the Warrants, common shares upon exercise of the Warrants held by Callinan that will result in Callinan holding more than 19% of the issued and outstanding shares of Golden Dory.
Concurrent with the closing of the financing, which is expected to occur on or about November 12, 2012, Golden Dory shall grant Callinan an option (the "First Option"), exercisable at any time up to 180 days following 180 days of continuous commercial production, to acquire a 1.0% royalty (the "Callinan Royalty") on the Iron Horse Property on the payment by Callinan to Golden Dory of $1,000,000. Golden Dory shall also grant Callinan an additional option (the "Second Option") whereby Callinan can acquire up to an additional 1.1% royalty (with a minimum 0.5% royalty) by paying Golden Dory the net present value for that additional royalty, the value of which to be determined by an independent third party based on a bankable feasibility study used for mine construction on the Iron Horse Property.
Golden Dory is obligated, as a condition of the Investment, to spend $1 million in exploration on the Iron Horse Property in the Labrador Trough which is currently a 60/40 joint venture between Golden Dory and Metals Creek Resources with Golden Dory acting as operator. The Iron Horse Property is host to a new and potentially significant iron ore discovery from which drill intercepts of 309.00 meters @ 28.6% Fe were reported by Golden Dory in a news release dated October 10, 2012. Golden Dory's drilling in 2012 represents the first ever drilling on the iron ore formations on the Iron Horse Property.
Kevin Keats, President and CEO of Golden Dory states, "We are very pleased to welcome Callinan Royalties as our newest and one of our largest shareholders. Importantly, the arrangement supports our belief in the potential of the Iron Horse discovery located in one of the world's premiere iron ore districts, the Labrador Trough."
About Golden Dory Resources Corp.
Golden Dory Resources Corp. (TSX.V-GDR) is primarily focused on iron ore exploration at the Iron Horse Project in Newfoundland & Labrador, Canada; and in the Long Canyon district (Pequop South), and Reef properties in the state of Nevada, USA.
About Callinan Royalties Corporation
Callinan Royalties Corporation is a growing mineral royalty company based in Canada. By prudently managing its royalty cash flows, Callinan pursues a growth strategy expanding its royalty portfolio by creating mineral royalties through financing and acquisition.
This news release has been reviewed and approved by Timothy Froude, P. Geo., a "Qualified Person" under National Instrument 43-101. For further information, please contact Kevin D. Keats, President and CEO of Golden Dory at (709) 256-4201, or Jeremy Hill, CHF Investor Relations at (416) 868-1079.
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.
Investors are cautioned that trading in the securities of the Company should be considered highly speculative. The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Golden Dory will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Golden Dory.
Copyright (c) 2012 Thenewswire.ca - All rights reserved.