Grandview Gold closes $416,666 FT financing

2008-12-05 09:54 ET - News Release

Mr. Paul Sarjeant reports

GRANDVIEW GOLD INC. ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Grandview Gold Inc. has closed a brokered private placement with Sandfire Securities Inc. The offering resulted in the issuance of 8,333,333 flow-through common shares to the MineralFields Group at a purchase price of five cents per share for gross proceeds of $416,666.65.

In connection with the offering, Grandview paid a cash fee of 8 per cent of the gross proceeds raised under the offering and also issued broker options to acquire 666,666 common shares at a price of five cents per common share for a period of 24 months after closing.

The proceeds from the offering will be used primarily to finance Grandview's drilling program on its Red Lake project in Ontario, as well as working capital and general corporate purposes. All costs associated with the offering will be paid by Grandview from its general funds.

"The company will focus exploration funds and geological expertise on high potential properties in the Red Lake gold district," says Grandview president and chief executive officer, Paul Sarjeant. "We encountered considerable visible gold and numerous high-grade intercepts during drilling at our Dixie Lake property earlier this year and last season, most particularly in the promising NS zone, and we intend to test extensions of that mineralization and other targets as well. Dixie Lake drill programs delivered assays like 163.75 grams per tonne gold over 0.47m, 61.97 grams per tonne gold over 1m, and 22.9 grams per tonne gold over 2.86 metres -- typical of the kind of narrow-vein, high-grade gold environment found elsewhere in the Red Lake gold district."

The securities issued pursuant to offering will all be subject to a four-month statutory hold commencing from the date of issuance. The offering is subject to Toronto Stock Exchange acceptance of requisite regulatory filings.

About the property

Grandview has an option agreement with Fronteer Development Group, and has earned a 64-per-cent interest in the 1,664-hectare Dixie Lake property located just 16 miles south of Goldcorp's Red Lake mine, one of the richest, lowest-cost production gold mines in the world. The Red Lake mine produces approximately 600,000 ounces worth $460-million (U.S.) annually, with over 11 million ounces ($8.5-billion (U.S.)) gold to date. Since the mid-1960s the Red Lake gold district has yielded over 30 million ounces of gold worth over $23-billion (U.S.) at today's prices.

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