Gold Bullion arranges $3.22-million financing

2010-03-16 13:00 ET - News Release

Mr. Frank Basa reports

PRIVATE PLACEMENT ANNOUNCED

Gold Bullion Development Corp. has arranged a non-brokered private placement financing consisting of up to 15 million units at a purchase price of 21.5 cents per unit to raise gross proceeds of up to $3,225,000. Each unit will consist of one common share in the capital of the company and one-half of a transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share in the capital of the company for a period of two years from the date of issuance at a purchase price of 30 cents per share.

The company will pay finders' fees to arm's-length parties in connection with the private placement, equal to 10 per cent of the gross subscription proceeds realized from the sale of units by the respective finder, payable in cash and in addition, at the discretion of the company, will issue non-transferable share purchase warrants equal to 10 per cent of the number of units sold by the respective finder. Each finder's warrant will entitle the holder to purchase an additional common share in the capital of the company for a period of two years from the date of issuance, at a purchase price of 30 cents per share. Certain directors, officers and insiders of the company may participate in the private placement. The securities issued will be subject to a hold period of four months and one day.

Proceeds of the private placement will be used for the development of the company's Granada gold mine. The private placement will be subject to approval by the TSX Venture Exchange.

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