PRESS RELEASE 3965 156 Street, Surrey, BC, V3S 0G7 Telephone: 604 838 3376 Fax: 604 648-9307
GOLD BULLION ANNOUNCES CLOSING OF $219,000 “FLOW-THROUGH” PRIVATE PLACEMENT WITH MINERALFIELDS
Vancouver, British Columbia – May 12, 2008 – Gold Bullion Development Corp. (TSX-V: GBB) announces that it has held a first closing of a private placement by issuing 2,192,970 “flow-through” units to one limited partnerships associated with MineralFields Group of Toronto, Ontario at a price $0.10 per unit, for gross proceeds to Gold Bullion of $219,297. Each unit consists of one “flow-through” common shares of Gold Bullion and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Gold Bullion at a price of $0.12 per share until May 7, 2009 and thereafter at a price of $0.16 per share until May 7, 2010.
The sale of the 2,192,970 units represents the first tranche of a private placement of up to 3,442,970 units, for maximum gross proceeds to Gold Bullion $344,297. Gold Bullion anticipates that a second and final closing of the private placement will take place on or about May 30, 2008.
In connection with the private placement, Gold Bullion paid a finder’s fee to Limited Market Dealer Inc., consisting of (i) a cash commission of $4,385,94; (ii) 65,789 units, representing 3 % of the number of “flowthrough” units sold in the private placement; and (iii) a compensation option entitling Limited Market Dealer Inc. to purchase up to 219,297 units of Gold Bullion, representing 10 % of the number of “flow-through”
units sold in the private placement. The compensation option is exercisable at a price of $0.10 per unit until May 7, 2010. Each unit will be comprised of one common share of Gold Bullion and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.12 per share until May 7, 2009 and at a price of $0.16 per share until May 7, 2010.
Gold Bullion also paid Limited Market Dealer Inc. a due diligence fee of $10,965.
Under applicable securities legislation and policies of the TSX Venture Exchange, the common shares and warrants issued in the private placement are subject to a hold period expiring on September 8, 2008.
Gold Bullion will use the proceeds from the private placement to explore its properties in Québec.
As a result of the private placement, there are 48,001,681 common shares of Gold Bullion issued and outstanding.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.
ON BEHALF OF THE BOARD OF DIRECTORS
:signed : ‘Frank J. Basa’
Frank J. Basa, P.Eng.
President and Chief Executive Officer
CONTACT INFORMATION
Frank J. Basa, P. Eng. President & Chairman
Tel: (705) 647-2151
Fax: (604) 648-9307
E-mail: Goldbulliondevelopmentcorp.com
Investor Relations
AGORACOM Investor Relations
http://www.agoracom.com/IR/goldbullion
gbb@Agoracom.com
THIS PRESS RELEASE HAS BEEN PREPARED BY MANAGEMENT. THE TSX VENTURE
EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
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