TORONTO, ONTARIO--(Marketwire - June 19, 2008) - Garrison International Ltd. (TSX VENTURE:GAU) (the "Company" or "Garrison") is announcing that, with the mutual consent of Asia Goldworks Limited ("AGL"), the final closing of its previously announced private placement with AGL will be postponed. As discussed in greater detail further in this release, AGL has invested a total of $3,000,000 in Garrison (out of the total $5,000,000 AGL has committed to invest in Garrison) through two closings that occurred on March 27, 2008 and May 30, 2008.
The final closing, for gross proceeds of $2,000,000, will be delayed. Garrison anticipates that the funds to be invested in Garrison at that closing will be used to purchase mining equipment. Garrison anticipates that those purchases would be made in September of 2008, and as such the funds to be invested by AGL in the third closing are not yet required.
The Company's press release of June 2, 2008 stated that the third closing was "expected to occur shortly." Garrison has been assured by AGL that the funds to be invested are committed. However, as AGL has encountered problems delivering those funds to Garrison due to currency exchange and tax issues in China, it is not certain when appropriate authorizations and arrangements for the transfer of the required funds will occur. However, AGL has advised Garrison that it anticipates completing the necessary arrangements for the funding by the end of July of 2008.
The third closing was to occur pursuant to a share purchase agreement that provided that AGL would invest an aggregate of $5,000,000 in Garrison by acquiring up to 50,000,000 common shares units ("Units") of the Company in three closings. Pursuant to that agreement, each Unit, priced at $0.10, was to consist of one common share and one purchase warrant exercisable at a price of $0.12 for one common share of Garrison for 18 months from the date of issue. Details of the share purchase agreement may be found in the Company's press release dated March 18, 2008.
The first closing was completed on March 27, 2008 for 7,000,000 Units and gross proceeds of $700,000. The second closing was completed on May 30, 2008 for 23,000,000 Units and gross proceeds of $2,300,000. As of the second closing, AGL holds 33,500,000 common shares of Garrison, which represents 34.3% of the Company's issued and outstanding shares. AGL also holds 30,000,000 warrants, each of which is exercisable for one common share of Garrison. If AGL exercised all of its warrants, it would own 63,500,000 common shares of Garrison, which would represent 49.7% of the Company's issued and outstanding shares. Garrison has applied to the TSX Venture Exchange (the "Exchange") for final acceptance of the first and second closings of the private placement.
When and if the third closing is ready to proceed, Garrison will submit a new application for approval to the Exchange. This application will be a separate and new submission, and the terms of the third closing will be in accordance with Exchange Policy 4.1 and will reflect the current market price of the Company's shares at the time of submission.
Tovshiir Property Update
Garrison is also pleased to announce that drilling at its Tovshiir project will recommence in the first week of July of 2008. Several targets were identified through the sampling program and the other exploration activities conducted by Garrison on the Tovshiir property in 2007. The drilling that Garrison now plans to undertake has been designed to further investigate these targets.
Further to the Company's plan to move the Tovhsiir project into production at the earliest possible date, Garrison can now confirm that it has filed the necessary documents with the Mongolian government in connection with its application for land use and environmental operation permits. These documents include an economic study report and an environmental impact assessment report (which include social impact studies). The application requests approval for a cyanide operation at the Tovshiir project. As stated in the Company's February 6, 2008 news release, the economic study report was prepared by Garrison's staff and was not prepared in accordance with NI 43-101. Therefore, the results of this report may not be disclosed in press releases or to actual or prospective investors, and will be used only in the context of Garrison's permit applications to the Mongolian government.
These governmental filings were made further to the Company's plan to commence mining at this property in the 4th quarter of 2008. Commencing production is dependent upon the receipt of all required governmental approvals, as well as the Company obtaining additional funding, such as the additional $2,000,000 committed by AGL or funding at similar levels from one or more other sources.
About the Company
Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage gold properties in Mongolia. For complete details on Garrison International Ltd. and its partners, management encourages investors and interested parties to view its public documents filed on SEDAR at www.sedar.com.
For all Garrison International Ltd. investor relations needs, investors are asked to visit the Garrison International IR Hub at http://www.agoracom.com/ir/garrison where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to gau@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements in this news release, other than statements of historical fact, are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Garrison International Ltd. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Garrison International Ltd. assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
Shares Outstanding - 97,738,057
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. |
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