Gulf Shores Closes Final Tranche of Private Placement
September 20 2011 - 10:18PM
Marketwired
Gulf Shores Resources Ltd. (TSX VENTURE: GUL)(FRANKFURT: GFU) (the
"Company") announces that further to its news release dated April
4, 2011 it has closed the final tranche of its private placement
and has issued an aggregate 9,610,000 units ("Units") at a price of
$0.05 per Unit for gross proceeds of $480,500 (the "Private
Placement").
2,100,000 of the Units are flow-through Units ("FT Units") and
7,510,000 of the Units are non-flow-through Units ("NFT Units").
Each FT Unit is comprised of one flow-through common share and
one-half of one flow-through common share purchase warrant ("FT
Warrant"); each whole FT Warrant entitling the holder to purchase
one additional flow-through common share at a price of $0.10 per
share for a period of two years from the date of issuance. Each NFT
Unit is comprised of one common share and one common share purchase
warrant ("NFT Warrant"); each NFT Warrant entitling the holder to
purchase one common share at a price of $0.10 per share for a
period of two years from the date of issuance. The FT Warrants and
NFT Warrants are subject to an acceleration clause such that in the
event the closing price of the Company's common shares on the
Exchange is equal to greater than $0.15 per share for 20
consecutive trading days at any time following four months after
the date of closing, the Company may, by notice to the Warrant
holders, reduce the remaining exercise period of the FT Warrants
and NFT Warrants to not less than 30 days following the date of
such notice. The Units are subject to a hold period expiring
January 20, 2012.
The Company paid aggregate finder's fees of $21,500 and 430,000
finder's warrants in connection with this final tranche. The
finder's warrants are exercisable at $0.10 for two years, and are
subject to a hold period expiring January 20, 2012.
The private placement proceeds are to be used for the drilling
and completion of three separate seismically defined Bakken
structures in South East Saskatchewan, and for general working
capital purposes.
ON BEHALF OF THE BOARD
A. Michael Turko, President and CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: Gulf Shores Resources Ltd. Mr. Gerald Otterman (604)
683-3309 or Toll Free (866) 292-2601 (604) 844-2834 (FAX)
info@gulfshoresresources.com www.gulfshoresresources.com