WOW .. these guys are getting sh!t done!!.. get a massive gold deal from teck, raise 200 million dollars and stack the board with some really amazing talent..i have never seen a better operation ..

WELL DONE !!!!

Gleichen warrant offering to raise $200-million (U.S.)
Ticker Symbol: C:GRL

Gleichen warrant offering to raise $200-million (U.S.)

Gleichen Resources Ltd (C:GRL)
Shares Issued 28,763,380
Last Close 10/14/2009 $1.39
Wednesday October 14 2009 – News Release

Mr. Michael Murphy reports

GLEICHEN ANNOUNCES US$200 MILLION FINANCING TO FUND ACQUISITION OF 78.8% OF MORELOS PROJECT

Gleichen Resources Ltd. has entered into an agreement to raise approximately $200-million (U.S.) in a fully marketed private placement of special warrants to finance its previously announced acquisition of 78.8 per cent of the Morelos project from Teck Resources Limited through the acquisition of Oroteck Mexico S.A. de C.V. from Teck subsidiaries Teck Metals Ltd. and Teck Exploration Ltd. for the purchase price of $150-million (U.S.) and a 4.9-per-cent stake in Gleichen. Oroteck owns 78.7966 per cent Series A shares in the capital of Minera Media Luna S.A. de C.V., the holder of the Morelos concessions. Gleichen has entered into an amending agreement dated Oct. 7, 2009, in connection with its acquisition of the Morelos project from Teck to extend the proposed closing date for the acquisition. A copy of the acquisition agreement and amending agreement are available on SEDAR.

Macquarie Capital Markets Canada Ltd. will act as bookrunner and lead agent and BMO Capital Markets and GMP Securities L.P. will act as co-lead agents in a syndicate of agents including Dundee Securities Corporation, Scotia Capital Inc. and Jones Gable & Company Limited in connection with the proposed offering. The terms and price of the special warrants will be determined in the context of the market and fixed on the day of execution of a definitive agency agreement.

The net proceeds from the offering are intended to be used for the acquisition of the Morelos Project, feasibility and development programs, and exploration at the Morelos Project, and for general working capital purposes.

Closing of the offering is anticipated to occur in the fourth quarter immediately prior to the acquisition of the Morelos Project. The closing of the offering is subject to entering into a definitive agency agreement and the satisfaction of certain conditions, including receipt of all necessary regulatory approvals, including from the TSX-V, and all other required approvals and consents. The Agents will receive a commission of 5.5 per cent of the gross proceeds raised in the offering in cash. The Agents will also receive compensation options equal to 1.0 per cent of that number of special warrants issued in connection with the offering.

Gleichen is pleased to announce that Fred Stanford has agreed to join the Company as director and incoming President & CEO upon the closing of the offering. Mr. Stanford is a highly qualified mining executive with nearly 30 years experience in the mining business. Mr. Stanford worked at Vale Inco (formerly Inco Limited) from 1981 to June 2009 holding senior management and executive positions including vice president of Business Services, Milling, Smelting and Refining and culminating as President of Vale Inco’s Ontario operations. Michael Murphy, Gleichen’s current President & CEO, will remain with Gleichen as a director.

Also at the time of the closing of the offering, Terry MacGibbon, Frank Davis, and Andrew Adams will be appointed to the Gleichen board of directors. Gleichen has called a special meeting of shareholders for November 26, 2009 to, in part, elect some of the new directors.

Terry MacGibbon is a registered professional geologist with over 35 years of international experience in the mining business. Mr. MacGibbon is the founder, Chairman and the CEO of FNX Mining Company Inc., a TSX-listed Canadian mining company that has emerged over the past five years from a junior exploration company into a mid-tier diversified Canadian mining company that produces nickel, copper, cobalt, platinum, palladium and gold from its mineral properties located in the Sudbury, ON, Canada mining camp. Mr. MacGibbon is a certified director, Institute of Corporate Directors, and has held directorships and senior executive positions in several TSX and TSX Venture public mining companies. Frank Davis is a partner of the law firm Fraser Milner Casgrain LLP, practicing principally in the areas of securities and capital markets, corporate finance, mergers and acquisitions and mining. He represents various public companies and investment banking firms in public and private offerings of equity and debt securities. He has acted as counsel to offerors, target companies and financial advisors in both hostile and negotiated merger and acquisition transactions and has been active in a variety of take-over bids, mergers, acquisitions, amalgamations, arrangements and divestitures. Mr. Davis holds a B.Comm., LLB and M.B.A., all from the University of Toronto, and is a director of several TSX and TSX.V companies. Andrew Adams obtained his Bachelor of Science Degree from Southampton University and qualified as a Chartered Accountant in the United Kingdom in 1981. He worked for the Anglo American group of companies for 12 years up to 1999, his final position being Vice President and Chief Financial officer of AngloGold North America based in Denver, Colorado. Mr. Adams worked for Aber Diamond Corporation as Vice President and Chief Financial officer from 1999 to 2003. Currently he serves as an independent non-executive director of Uranium One Inc.

October 14th, 2009
Categories: General . Author: admin