|December 22, 2010|
Kirrin Resources Closes First Tranche of Flow-Through Private Placement
|Calgary, Canada: Kirrin Resources Inc. ("Kirrin" or the "Corporation") today announced that it has completed the first closing of the non-brokered private placement announced on December 2, 2010. Kirrin has issued 9.525 million flow-through units ("FT Units") at a purchase price of $0.10 per FT Unit for a total of $952,500. The private placement is oversubscribed and Kirrin has sought and received conditional approval from the TSX Venture Exchange ("TSXV") to increase the private placement to $1.5 million. Kirrin anticipates a second closing will take place on or about December 23, 2010. |
Each FT Unit consists of one flow-through common share and one-half of a common share purchase warrant ("Warrant"). Each full Warrant is exercisable into one common share at a price of $0.14 per common share for 12 months from the date of issuance and $0.18 per common share for the following 12 months, subject to earlier expiry in certain circumstances. The private placement is subject to all necessary regulatory approvals including the approval of the TSXV. The issued securities, including the finder's warrants described below, are restricted from resale until April 21, 2011.
The proceeds from the Offering will be used for exploration on Kirrin's portfolio of rare earth element (REE) and uranium properties.
Finder's fees in the amount of $62,125 and finder's warrants, which are exercisable for a 24 month period beginning December 20, 2010, subject to earlier expiry in certain circumstances, to purchase up to 446,250 common shares of Kirrin at an exercise price of $0.14 per common share for 12 months from the date of issuance and $0.18 per common share for the following 12 months, were paid to arm's length finders in connection with the first tranche of the private placement.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin is engaged in rare earth element and uranium exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through acquisition, merger, strategic partnership and joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.
FOR FURTHER INFORMATION PLEASE CONTACT:
Derek J Moran, President, Kirrin Resources Inc.
27 82 440 3426
Robin Cook, Account Manager, CHF Investor Relations
To receive company news releases via e-mail, please advise [email protected] and specify "Kirrin News" in the subject line.
Forward-looking information: Except for statements of historical fact, all statements in this news release including, without limitation, future plans and objectives of the Company are forward-looking statements which involve risks and uncertainties. Specifically, this press release contains forward-looking statements concerning the anticipated timing of the closing of the second tranche of the private placement. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information and undue reliance should not be placed on it. The anticipated second closing date assumes that promised subscriptions and funds will be delivered as promised. The risk factors that could cause actual results to vary from results expressed or implied by the forward-looking statements contained in this press release are primarily events beyond Kirrin's control and may preclude Kirrin from satisfying all applicable pre-conditions and includes the risk that the second tranche of the private placement may not close. These forward-looking statements are made as of the date hereof and except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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