Tuesday, May 31, 2011

Goldrich Mining Company (GRMC) Closes Final Placement for Roughly $667k Net, Plans to Expand Gold Exploration and Production at Massive Alaskan...

Goldrich Mining Company (GRMC) Closes Final Placement for Roughly $667k Net, Plans to Expand Gold Exploration and Production at Massive Alaskan Chandalar Property

Goldrich Mining, the junior mineral development company which owns the entire 27 sq miles of the Chandalar gold district near Fairbanks Alaska (190 miles north), a world-class resource with high-grade gold veins and alluvial deposits, reported closure today of a private placement of the Company’s common stock/warrants. The company intends to use the capital infusion for exploration and development at Chandalar, as well as some general purpose expenses.

Everything went smoothly, with the placement being oversubscribed and terms being set in relation to the 20-day weighted volume average price of $0.23/share. The Company sold some 4.17M shares at $0.18 per unit, where each unit is comprised of a share of common stock and a warrant to purchase a share at $0.36 within 24 months from the day of issuance.

Thus GRMC has raked in some $750k, netting around $677k that the Company can use to address the massive amount of gold contained throughout the some 17.1k acres of mineral rights 100% owned by GRMC at the Chandalar site (23 patented Federal mining claims and 164 unpatented claims from the State of Alaska).

This is precisely the kind of jump start GRMC requires in order to aggressively pursue development at Chandalar, which has multiple promising targets, including a massive stratabound, sediment-hosted gold target (8 km by 550 m). The Company developed one of seven alluvial deposits, completing a test mine in 2009 that saw 1,500 oz Au in its first season of production in 2010.

Also among the terms of today’s reported private placement deal is a call option for GRMC whereby, in the event that the weighted volume average price of common shares exceeds $0.72 for 20 consecutive trading days, the Company may, at its sole discretion, issue written notice to warrant holders within ten business days, effectively accelerating warrant expiration date to within 20 business days after the issuance of notice. The Company has granted full resale registration rights to such investors.

Inquiring investors are encouraged to contact President, Director and CEO of GRMC, Mr. William Schara, directly via email at wschara@goldrichmining.com or, via the Company’s website at www.goldrichmining.com

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