Golden Dawn Minerals Completes Acquisition of 6891667 Canada Inc.admin
Freeman Smith, President of Golden Dawn Minerals Inc. announce the completion of the acquisition of all of the outstanding securities of 6891667 Canada Inc., a private Ontario company. Pursuant to this acquisition, Golden Dawn has acquired all of the assets of Canada Inc., which include approx. $1,000,000 of flow-through funds (less noted expenses) and an option to acquire an iron ore property near Sault Saint Marie, Ontario.
As consideration for this acquisition, the Company issued 6,509,627 shares to the former shareholders of Canada Inc. The shareholders agreed to voluntarily restrict trading of their acquisition shares with 50% being tradable after April 24, 2009 and the balance being tradable after August 24, 2009. Golden Dawn also issued 3,538,364 warrants to the former warrantholders of Canada Inc. Each warrant entitles the holder thereof to acquire one share of Golden Dawn at an exercise price of $0.30/share for a period of two years from the date of issue. In addition, a cash finder’s fee of $75,589.88 was paid with respect to completion of this transaction.
In conjunction with closing of this acquisition, Golden Dawn is pleased to advise that Mark Monaghan has been appointed as a director of the Company. Mr. Monaghan has over 15 years of banking and corporate development experience with Canadian investment banks and public companies. He is the former president of Quest Securities Corporation, where he acted as financial adviser, raising equity capital for companies. Mr. Monaghan currently serves as a consultant to companies and financial institutions in corporate development and merchant banking and sits on the board of directors of two public companies (Lara Exploration Ltd., Groupworks Financial Corp.). In addition, Mr. Monaghan sits on the advisory committee of Reservoir Capital Corp. and Forsys Metals Corp.
Golden Dawn also wishes to announce that it has granted an aggregate of 700,000 options to directors and officers. These options are exercisable at a price of $0.08 for a period of two years.
Freeman Smith, President of the Company stated, “Mark brings invaluable experience to the Company with his numerous contacts in the financial sector and practical experience in all aspects of corporate development. We look forward to an exciting 2009.”