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GoldSpring, Inc. Secures Financing to Commence Drilling PR Newswire ***"US Press Releases "
GOLD HILL, Nev., Dec. 12 /PRNewswire-FirstCall/ -- GoldSpring, Inc. (OTC Bulletin Board: GSPG) announced today that a group of its existing investors has committed financing in the amount of $1.0 million . In consideration for the financing, the Company has issued promissory notes at an original issue discount of twenty (20%) percent. The term of the notes is one year. The annual interest rate on the notes is 4.9% of the face value and is payable on the anniversary of the loan date. The Company intends to draw down $500,000 immediately to commence their planned drilling program and for general corporate purposes. The balance of the financing will be funded at the Company's request over the next 90 days to fund the drilling program.
Commenting on the financing, GoldSpring President and CEO, Rob Faber, said, "This phase of financing will be primarily utilized to advance our drilling program at our Comstock Lode project. For the last several months our team has been studying geological data of our Comstock Lode project to develop an efficient drilling program. With the geological study nearly complete, we have begun our search for a drilling contractor."
GoldSpring, Inc. is a North American precious metals mining company with an operating gold and silver mine in northern Nevada . The Company was formed in mid-2003 and acquired the Plum Mine property located in the Comstock Lode District in November 2003 . In the Company's relatively short history, it secured permits, built an infrastructure and brought the Comstock Lode project into production. Since 2005, the Company started acquiring additional properties around their Comstock Lode project in northern Nevada , expanding its footprint and creating opportunities for exploration. GoldSpring is an emerging company, looking to build on its success through the acquisition of other mineral properties in North America with reserves and exploration potential that can be efficiently put into near-term production. The Company's objectives are to increase production, increase reserves through exploration and acquisitions, expand its footprint in the Comstock, and maximize cash flow and return for its shareholders.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by GoldSpring) contains statements that are "forward-looking," as defined in Section 21E of the Securities Exchange Act, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, mining capability and potential contracts. Such forward-looking information involves important risks and uncertainties, which include the risk factors disclosed in our most recent Form 10-KSB filed on April 15, 2005 , that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of GoldSpring. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors. These and other factors, which could cause actual results to differ materially, are discussed in more detail in GoldSpring's filings with the Securities and Exchange Commission . Forward- looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Contact information for GoldSpring, Inc. :
P.O. Box 1118
Virginia City, NV 89440