Granada to roll back 1:8, arranges $700,000 offering

Nov 27, 2017

2017-11-24 17:40 ET – News Release

Mr. Frank Basa reports

GRANADA ANNOUNCES CONSOLIDATION AND POST-CONSOLIDATED FINANCING

For Granada Gold Mine Inc. to better finance the company, the board of directors has approved and authorize a consolidation of the company’s issued and outstanding share capital on a one-new-common-share-for-eight-old common-share basis, consolidating its 388,630,682 currently outstanding shares to 48,578,835 shares.

The company will not be issuing fractional shares as a result of the consolidation. Instead, all fractional shares equal or greater to one-half will be rounded to the next whole share. The company’s outstanding stock options and share purchase warrants will be adjusted upon completion of the consolidation.

The company does not intend to change its name or seek a new stock trading symbol from the exchange in connection with the consolidation. The company’s shares will continue to trade under the symbol GGM. The consolidation remains subject to the acceptance by the TSX Venture Exchange.

A letter of transmittal will be sent to the registered shareholders providing instructions to surrender the share certificates evidencing their preconsolidated common shares for replacement certificates of Granada Gold Mine, representing the number of postconsolidated common shares they are entitled to as a result of the consolidation. Until surrendered, each certificate representing the preconsolidated common shares will be deemed to represent the number of postconsolidated common shares of Granada Gold Mine that the holder thereof is entitled to as a result of the consolidation.

In connection with the one-for-eight rollback, the company also announces a non-brokered private placement offering of two million flow-through shares at a price of 35 cents per postconsolidated flow-through share, for gross proceeds of $700,000.

Finders’ fees will be paid in connection with the private placement, and all finders’ fees payable are subject to the acceptance of the exchange.

The proceeds of the private placement will be used for surface exploration, trenching and historical resampling of drill core on the company’s Granada gold property in Quebec.

All securities issued in connection with the private placement are subject to a four-month-and-a-day hold period in accordance with applicable securities laws.

About Granada Gold Mine Inc.

Granada Gold Mine is developing the Granada gold property near Rouyn-Noranda, Que. The property includes the former Granada gold mine, which produced more than 50,000 ounces of gold in the 1930s before a fire destroyed the surface buildings. The highly prolific Cadillac trend, which has been the source of more than 50 million ounces of gold produced in the past century on a line running from Val d’Or to Rouyn-Noranda, cuts through the north part of the property. An updated mineral resource estimate and revised block model dated June 30, 2017, with an effective date of May 16, 2017, include the first material estimate of high-grade gold resources discovered in zones at depth immediately north of the LONGBars zone open-pit deposit.

We seek Safe Harbor.

https://granadagoldmine.com/en/news/2017/