|December 29, 2010|
Kirrin Resources Closes $1.5 Million Private Placement
|Calgary, Alberta: Kirrin Resources Inc. today announced it has completed the non-brokered private placement announced on December 2, 2010. Kirrin has issued 15 million flow-through units ("FT Units") at a purchase price of $0.10 per FT Unit for a total of $1.5 million ("the Private Placement"). The Private Placement was over-subscribed and Kirrin sought and obtained the approval of the TSX Venture Exchange ("TSXV") to increase the Private Placement to the closing amount. The Private Placement closed in two tranches and the results of the first closing were announced on December 22, 2010. MineralFields Group acquired 5 million FT Units in the Private Placement. |
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 securities, including the finder's warrants described below, issued pursuant to the first and second closings of the Private Placement are restricted from resale until April 21 and 24, 2011 respectively.
The proceeds from the Private Placement will be used for exploration on Kirrin's portfolio of rare earth element (REE) and uranium properties.
Finder's fees in the amount of $99,925 and finder's warrants, which are exercisable for a 24 month period beginning December 20 and 23, 2010, subject to earlier expiry in certain circumstances, to purchase up to 810,250 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 private placement.
Kirrin also announced that its Board of Directors has granted options over 100,000 common shares at an exercise price of $0.12 per share to a geological consultant. Kirrin now has 1,291,000 options outstanding under its Option Plan, at an average exercise price of $0.12 per share.
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.
About MineralFields, Pathway and First Canadian Securities(tr)
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities (tr) (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities (tr).
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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