TORONTO, July 9, 2014 (GLOBE NEWSWIRE) -- Goldspike Exploration Inc. (TSX-V:GSE) ("Goldspike") is pleased to announce that it intends to complete a non-brokered private placement financing with Norvista Capital Corporation ("Norvista") for 3,333,333 common shares in the capital stock of Goldspike (the "Shares") at a price of $0.15 per Share for gross proceeds of $500,000 (the "Offering"). Goldspike intends to use the net proceeds from the Offering to fund continued exploration on Goldspike's assets and for general working capital purposes.
The Shares issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
R. Bruce Durham, President and Chief Executive Officer of Goldspike, and Donald H. Christie, Chief Financial Officer and Secretary of Goldspike, both also serve as directors of Norvista. As such, the Offering is a "related party transaction" for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Goldspike is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the Offering does not represent greater than 25% of Goldspike's market capitalization. The independent directors of Goldspike approved the Offering and Messers. Durham and Christie abstained from voting on the approval of the Offering. Other than Mr. Durham and Mr. Christie, no director of Goldspike abstained from voting on the Offering.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSX-V") and applicable securities regulatory authorities.
CAUTIONARY STATEMENT: Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Goldspike's objectives, goals or future plans, including successful completion of the Offering. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, and those risks set out in Goldspike's public documents filed on SEDAR. Although Goldspike believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Goldspike disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.