G4G Resources Announces Private Placement Financing
Vancouver, B.C., September 22, 2008 -- G4G Resources Ltd. (TSX-V: GXG) (“G4G”) is pleased to announce plans to complete a non-brokered private placement of up to $1,000,000 through the issuance of units priced at $0.25. Each unit would consist of one common share and one common share purchase warrant (a “Warrant”). Each Warrant would entitle the holder to acquire an additional common share of G4G at a price of $0.45 until the earlier of (i) 24 months following issuance; and (ii) in the event that the common shares of G4G trade at or above $0.70 per share for a period of 20 consecutive days, the day that is the 45th day following G4G’s delivery to the holder of G4G’s notice accelerating the expiry date. The private placement financing is subject to regulatory approval and all securities issued in connection with the private placement will be subject to a four-month regulatory hold period.
G4G plans on using the proceeds from the financing for the exploration and development of the Company’s recently announced joint ventures with Teck Cominco, IMBS, Magnetite Holdings, Crusader and the University of Witwatersrand, and for identifying additional opportunities and working capital purposes.
About G4G Resources
G4G Resources is a Canadian-based company with projects in iron ore, iron production and alternative fuels. Building strategic partnerships is the key to the company’s development.
Under an agreement with TCL Sweden Ltd. (a wholly owned subsidiary of Teck Cominco Limited), G4G is operating an iron ore project in Sweden. The 2008-2009 development program is focused on the Junosuando occurrence, with a historical iron ore resource of 60 million tonnes, as reported by the Geological Survey of Sweden. (Note: The historical resource number has not been verified by a Qualified Person under NI 43-101).
Brazil is a key target region, with G4G having a strategic partnership with Crusader do Brasil Mineracao Ltda., under which the companies are working together to acquire iron ore fines in Brazil as feedstock for the production of saleable iron units.
For the production of iron, G4G has an agreement with Iron Mineral Beneficiation Services (Pty) Ltd (IMBS) to utilize FinesmeltTM technology, a process which converts iron ore fines into high quality iron units.
Alternative fuels is another key area of development, with G4G having an MOU with University of Witwatersrand, Johannesburg (“Wits”) to commercialize the syngas to liquids production process that has been developed by Wits’ Centre of Materials and Process Synthesis (COMPS). The process is a new generation application of Fischer Tropsch technology.
Encompassing both iron ore and alternative fuels, G4G has an agreement which will allow the company to acquire a majority interest in Magnetite Holdings, which holds iron ore assets in Namibia. The properties in Namibia are slated to produce a chemical grade iron catalyst for sale to coal, gas and biomass converters using the Fischer Tropsch process to produce ultra-clean diesel and gasoline.
Forward-Looking Statement
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company’s 2007 Annual Report filed with SEDAR on April 23, 2008.
For more information contact:
Basil Botha, President and CEO
G4G Resources Ltd.
Tel: 604-648-4202
Email:
