SASKATCHEWAN — Golden Band Resources of Saskatoon is raising $30 million by selling gold-linked convertible debentures. A maximum of 30,000 units will be sold at a price of $1,000 per unit. The debentures will be due on Jan. 1, 2013 and are repayable in cash, 1.1 oz of gold or shares, as individual holders desire. The units also include detachable warrants that may be exercised for the purchase of shares at predetermined prices.
Of the proceeds, approximately $26 million will be used to finance the start of gold production at the La Ronge project in the northern part of the province. Golden Band hopes to be mining the Bingo, Komis and EP deposits and pouring gold at the 700-t/d Jolu mill by the end of this year. Initial production will be from open pits, but an underground mine is planned for part of the Bingo deposit. Annual production will average 70,000 oz of gold in each of the 10 years of mine life. Other nearby deposits may allow mine life to be extended.
Golden Band has posted both the La Ronge technical reports and environmental impact statement on its website, www.GoldenBandResources.com.