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Thursday, July 09, 2009
Golden Harp Resources Seeks Approval To Reprice And Extend The Terms Of 7,612,200 Share Purchase Warrants
Vancouver, BC -- Thursday, July 09, 2009 -- Golden Harp Resources Inc. (GHR:TSXV) today announced that it will seek regulatory and warrant holder approval to amend the terms of 7,612,200 outstanding share purchase warrants issued as part of the unit offering comprising the Company's Initial Public Offering (IPO) completed February 29, 2008. The amendments will include extending the term of all 7,612,200 outstanding Regular and Flow-Through Warrants for six months from August 29, 2009 to February 28, 2010 and reducing the exercise price (previously $0.45 and $0.50 respectively) to a common exercise price of $0.15. In compliance with the TSXV Exchange (TSXV) requirements, the Company must obtain the consent of all warrant holders prior to the current expiry date of August 29, 2009, in order to proceed with the re-pricing.
As a condition to the re-pricing the TSXV requires that if, for 10 consecutive trading days, the closing price of the Company's listed shares is $0.19 or greater, then the term of the warrants must be amended to shorten the remaining exercise period to 30 days The 30-day period will commence seven calendar days after the 10th premium trading day.
Pursuant to the rules of the TSXV, the 2,160 broker warrants and the warrants included in the 889,070, agent's options issued in conjunction with the IPO may not be included in the amendment.
The Company will seek the approval of all warrant holders of the proposed amendments outlined above via mail. All warrant holders or their agents should execute and return the consent to amendments to the Company immediately, in order for the amendments to be effective. Although authorized and approved by the Company's directors, the proposed warrant amendments with respect to the Regular Warrants or the Flow-Through Warrants will not be effective until warrant holder approval is received by the Company and the TSXV has approved the application. Golden Harp proposes to use the proceeds from any of the warrants that are exercised for exploration and general working capital.
"We value our shareholders and in consideration of the recent market turmoil, we believe we have proposed very favourable terms within the permitted regulations to allow our warrant holders to benefit from exercising at these reduced prices and extending the term of their warrants to give them some additional time to consider the opportunity," said President and CEO, Natasha Blackburn.
About Golden Harp
Golden Harp Resources Inc. is a Canadian mineral exploration company. Its 145 square km, Copper Hill gold and base metal project is located 100 kilometres south of Timmins, along Highway 560 between Shining Tree and Gowganda, Northern Ontario. The property, situated along the projected western extension of the Cadillac Larder Lake Break in the Abitibi Greenstone Belt, hosts several gold zones in a variety of geological settings; a copper zone; and large portions of the property remain to be evaluated. The Company recently optioned a portion of its claim units (the Block A Property) to Benton Resources Corp. who have been actively exploring and drilling. The Company has 24,673,042 shares outstanding.
For further information about Golden Harp, please visit our website at www.goldenharpresources.com or contact:
Natasha Blackburn, President and CEO
Tel: 604-688-4277
Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
View News Release in PDF
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