SCOTTSDALE, Ariz., March 22, 2004 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG): GoldSpring has closed the $10 million Institutional Private Placement previously announced on March 12, 2004. The offering was fully subscribed and gross proceeds of $10 million have been received. The subscribers, U.S. Financial Institutional Investors and U.S. accredited investors, have received 21,739,130 unregistered common shares and warrants to purchase 50% additional shares of common stock, at an exercise price of $0.86 per share. Investors also have the option to invest an additional $5.0 million in a green shoe option.
These funds enable the Company to focus on expanding mineral production at existing properties and increasing reserves through strategic acquisitions and exploration. The Company will continue to seek acquisition opportunities where the properties have proven reserves, advanced permitting in place and where exploration opportunities exist. The Company has Letters of Intent in place for properties that meet these criteria and contingent upon successful due diligence, intends to complete these acquisitions.
This capital infusion, according to the Company's business plan, will enable production revenue on an annualized basis to increase from around $20 million to about $70 million.
The restricted shares issued have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, and applicable state securities laws or an applicable exemption from registration requirements. The Company has agreed to file a registration statement in due course covering the resale of the shares in the future.
GoldSpring, began business as a public company in March 2003 and has successfully raised over $12.5 million in equity since September 2003 and brought The Plum Mine, acquired in November 2003, into full production. 2004 proves to be another rapid growth year, building on about $600 million of in ground gold, silver and copper reserves with a plan to exceed $1 billion by year-end.
Further information will be forthcoming regarding ongoing corporate operations, acquisitions in progress and the pending AMEX listing when available for publication.
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.