VANCOUVER, March 19 /PRNewswire-FirstCall/ -- Robert L. Card, President of Consolidated Gulfside Resources Ltd. (the "Company"), is pleased to announce that it has arranged a private placement of 4,000,000 units at a price of $0.50 per unit. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase one additional common share of the Company at an exercise price of $0.75 per share for a period of two years.
The Company will be entitled to accelerate the expiry date of the warrants forming part of the Units to the date that is 30 days following the date a news release is issued by the Company announcing that the published closing price of the common shares of the Company on the TSX Venture Exchange has been greater than $1.25 for 30 consecutive trading days (the "Premium Trading Day"). The 30-day exercise period is to commence seven calendar days after the 10th Premium Trading Day.
The proceeds of the private placement will be used for exploration on the Company's three main properties: the Erdenet 1, the Erdenet 2 and the Khentii. All of these properties are located in northern Mongolia and were targeted, due to their similar geological settings, to either the Oyu Tolgoi Island Arc porphyry copper-molybdenum-type deposit of Ivanhoe Mines or to the largest operating mine in Mongolia, the huge Erdenet porphyry copper-molybdenum-type deposit.
The goal of the exploration work, which will commence in April 2007, on the three areas is:
- to confirm Soviet-era anomalies, develop multiple geophysics targets
and begin drilling on Erdenet 1;
- to confirm Soviet-era anomalies and develop drill targets on Khentii;
- to test magnetic features and develop geochemical anomalies on
Erdenet 2 for geophysical testing; and
- to obtain additional leases in both the Erdenet and Khentii areas.
Proceeds of the private placement will also be used for general corporate purposes.
A finder's fee may be payable in connection with this placement.
The Company also announces that it intends to change its name from "Consolidated Gulfside Resources Ltd." to "Gulfside Minerals Ltd." or such other name as approved by the board of directors.
The financing and name change remain subject to TSX Venture Exchange acceptance.
On behalf of the board of directors of
CONSOLIDATED GULFSIDE RESOURCES LTD.
"Robert L Card"
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Robert L. Card
President
No Canadian stock exchange has approved or disapproved the contents of
this release
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning CGL's planned exploration program at the Bronze Fox prospect and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although CGL believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.
CONTACT: please contact the Company at: (604) 687-7828 or access the Company's website at: "http://www.cglresources.com/" or filing statements on SEDAR at http://www.sedar.com/
