Metanor Resources Inc. Engages Northern Securities in Connection With a $2 Million Private Placement
VAL-D'OR, QUEBEC -- (Marketwire) -- 07/21/10 -- Metanor Resources Inc. (TSX VENTURE: MTO) is pleased to announce that it has engaged Northern Securities Inc. as agent for a best efforts private placement of up to 3,076,923 'flow-through' common shares to be issued at a price of $0.65 per share, for aggregate gross proceeds to Metanor of $2 million.
Metanor has also granted Northern an option, exercisable prior to the closing of the private placement, to increase the size of the private placement by up to 3,076,923 additional flow-through common shares to be issued at the issue price of the private placement.
Metanor will use the proceeds from the placement of flow-through common shares to incur Canadian Exploration Expenses on its Barry Extension property and Bachelor Lake Mine.
Northern may appoint a selling group consisting of other registered dealers acceptable to Metanor, for the purpose of arranging for purchasers of the flow-through common shares.
The private placement will be effected pursuant to available prospectus exemptions under applicable securities legislation and is expected to close on or before July 30, 2010, or such other date as Northern and Metanor may determine. The placement is subject to receipt of all necessary corporate and regulatory approvals, including that of the TSX Venture Exchange, and to the signing of an Agency Agreement. The securities issued in the private placement will be subject to a four-month 'hold period' under applicable securities legislation and the policies of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act'), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
128,650,005 outstanding shares
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Metanor Resources Inc.
Ronald Perry, Vice President
514-262-8286
rperry@metanor.ca