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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2011) - Goldrush Resources Ltd. (TSX VENTURE:GOD) (Goldrush or the "Company") President & CEO Len Brownlie, Ph.D is pleased to announce that Goldrush has closed the non-brokered private placement (the "Financing") announced on May 2, 2011 of 21,250,000 units at a purchase price of $0.16 per unit for gross proceeds of $3,400,000. Each unit consists of one common share and one half of one non-transferable share purchase warrant. Each full warrant entitles the holder to purchase an additional common share at a price of $0.21 for a period of 18 months from Closing. All securities issued pursuant to the Financing are subject to a four month statutory hold period which expires on October 1, 2011. Following completion of the Financing Goldrush will have a total of 136,387,504 common shares issued and outstanding. The private placement was fully subscribed.
The net proceeds of the Financing will be used: (i) to fund continued drilling and development of the Company's Ronguen gold deposit in Burkina Faso, West Africa; (ii) to fund continued drilling on the Company's other high priority Burkina Faso projects; (iii) to acquire additional properties and (iv) for working capital purposes.
Finder's fees totalling $225,092 and 1,406,825 2011B warrants have been paid in connection with part of the Financing. The 2011B warrants entitle the holder to purchase one additional share at a price of $0.21 until December 1, 2012.
The Company's 10,300 metre reverse circulation ("RC") drill program in Burkina Faso was completed on May 29 and the Company is awaiting RC drilling assay results from 84 holes drilled on (i) the Kongoussi permit (Ronguen deposit and Pouni regional target); (ii) the Tikare permit (Kilou-West target); (iii) the Liki permit and (iv) the Nakiambouri and Gonaba Est permits.
To follow-up on promising drilling results the Company has entered into contracts with Forages Technic-Eau/Burkina Sarl and Projet Production International BF Sarl, respectively to drill 10,000 metres of RC and 8,000 metres of core, during the third quarter of 2011.
For further information on Goldrush Resources Ltd., shareholders and other interested parties are invited to visit the Company's website .
ON BEHALF OF THE BOARD OF DIRECTORS,
GOLDRUSH RESOURCES LTD.
Len Brownlie - President and Chief Executive Officer
About Goldrush:
Goldrush is a mineral exploration company focused on gold exploration in West Africa, where the company has discovered, and is currently expanding and defining the 249,000 ounce Ronguen gold deposit in Burkina Faso.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT: Don Willoughby
Goldrush Resources Ltd.
VP Corporate Development
info@goldrushresources.ca
>www.equicomgroup.com
