VANCOUVER,
Dec. 4, 2013 /CNW/ - Gold Bullion
Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company") or
"Gold Bullion") announces that it is considering raising funds by
issuing a new series of shares, to be called "Granada Royalty
Shares", by way of private placement. The purpose of the
Granada Royalty Shares will be to allow investors to participate in
the security of gold ownership if and when Gold Bullion's Granada
Gold Property enters into commercial production. The Granada
Gold Property is near Rouyn-Noranda, Québec.
Following the commencement of commercial
production at Gold Bullion's Granada Gold Property, the Granada
Royalty Shares will entitle the holders thereof to receive a
percentage of the refined gold produced from the Granada Gold
Property for so long as Gold Bullion has an ownership interest in
the Property. The aggregate percentage of the refined gold to
which holders of Granada Royalty Shares will be entitled and the
issue price of the Granada Royalty Shares will be determined by
Gold Bullion's Board of Directors prior to the issuance of the
shares. In certain circumstances, it may be possible for Gold
Bullion shareholders to acquire Granada Royalty Shares by tendering
their Gold Bullion common shares.
The Granada Royalty Shares will provide that
Gold Bullion will make payments to holders of the shares, on a
quarterly basis, by depositing the refined gold to which the holder
is entitled or its equivalent in a "metal account" or other account
designated by the holder. In the event that a holder has not
designated an account into which the refined gold is to be
deposited, Gold Bullion will sell the refined gold and pay the
proceeds from the sale to the holder, net of commissions,
applicable taxes and any related expenses incurred by Gold Bullion
in making such sale.
Gold Bullion will have the right to redeem the
Granada Royalty Shares at any time. If Gold Bullion redeems
Granada Royalty Shares, it will pay to the holders a redemption
price equal to the volume weighted average trading price of the
Granada Royalty Shares on the stock exchange on which the shares
are then listed for the last five days on which the shares traded
immediately prior to the date of Gold Bullion's redemption
notice. In the event that the Granada Royalty Shares are not
listed or posted for trading on a stock exchange, the redemption
price will be equal to the fair market value of the Granada Royalty
Shares as determined by the Board of Directors of Gold Bullion in
its sole discretion.
Gold Bullion cannot guarantee that the Granada
Gold Property will enter into commercial production, that the
proposed Granada Royalty Shares will be issued or listed on any
stock exchange or, if issued, the amount of funds that Gold Bullion
will raise from such issuance. The issuance of the Granada
Royalty Shares may be subject to shareholder and regulatory
approval. The Granada Royalty Shares have not been, and will
not be, registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements
thereunder.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX
Venture-listed junior natural resource company focusing on the
exploration and development of its Granada Property near
Rouyn-Noranda, Québec, and its
high grade Castle Silver Mine in Gowganda, Ontario. Additional
information on the Company's Granada gold property is available by visiting
the website at www.GoldBullionDevelopmentCorp.com and on
SEDAR.com.
"Frank J. Basa"
Frank J. Basa,
P.Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. This news release may
contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking
statements address future events and conditions and therefore,
involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such
statements.
SOURCE Gold Bullion Development Corp.