Dec 01, 2010 17:40 ET
Uragold Bay Closes a First Non Broker Private Placement
MONTREAL, QUEBEC--(Marketwire - Dec. 1, 2010) - Uragold Bay Resources Inc. (TSX VENTURE:UBR), is pleased to announce that it has closed a non-brokered private placement in the amount of $ 490,000 for the sale of 9,800 units ('Unit'), at a subscription price of $ 50.00 per Unit. Each Unit being comprised of 1,000 shares of the Company, of which 750 shares to be issued as a "flow-through shares", and 1,000 non-flow-through common shares purchase warrants (the "Warrants") of the Company. Of the subscription price of Cdn $ 50.00 per Unit, the Company hereby allocates $ 49.00 to the price of the Unit Shares comprised in each Unit and $1.00 to the price of the Warrants comprised in each Unit. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company that is not a "flow-through share" ("Common Share") at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month holding period from the date of closing of the placement.
In connection with this placement, the Corporation will pay a cash finder's fees of $ 18,600 and $ 10,850 respectively to Macquarie Private Wealth inc. and Gundyco and finder's fees warrants for a total of 372,000 and 216,000 respectively to Macquarie Private Wealth Inc. and Gundyco which allow the finders to acquire respectively 372,000 and 216,000 common shares of the Corporation at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement.
The private placement is subject to regulatory approval.
Other Corporate development:
As previously announced on July 13, 2010, the Corporation has settle debt of $ 70,408,28 by issuing the service providers 1,408,165 common shares and as previously announced on November 24, 2010, the Corporation has settle debt of $ 130,000,00 by issuing the service providers 2,600,000 common shares.
Bernard Tourillon, UBR Chairman and CEO comments: The private placement is an additional positive steps taken by the Corporation since this increase the Corporation liquidity to be used for the development of the Corporation's properties."

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