|October 20, 2011|
Kirrin Resources Announces $1,500,000 Private Placement
|Calgary, Canada: Kirrin Resources Inc. today announced that it is proceeding with a non-brokered financing of up to 30,000,000 units ("Units") by way of private placement at a purchase price of $0.05 per Unit for aggregate consideration of up to $1,500,000 (the "Private Placement"). Each Unit will consist of one common share in the share capital of Kirrin ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"). Each full Warrant will be exercisable into one Common Share at a price of $0.10 per Common Share for 18 months from the date of issuance subject to earlier expiry in certain circumstances. The Private Placement is subject to all necessary regulatory approvals, including the conditional approval of the TSX Venture Exchange (the "Exchange").|
The proceeds from the Private Placement will be used for exploration on Kirrin's portfolio of rare earth elements and uranium properties and for general working capital purposes. The Private Placement is being offered in various Canadian provinces as well as other selected jurisdictions. It is expected to close on or about November 23, 2010 or such other date agreed by Kirrin and approved by the Exchange. The securities issued pursuant to the Private Placement shall be subject to a four month hold period under applicable securities laws.
Kirrin may retain agents in connection with the sale of Units and such agents may receive from Kirrin a cash fee of up to 8% of the gross proceeds of the Private Placement that result from introductions by such agent.
It is anticipated that certain directors and officers of Kirrin may subscribe to the Offering. Pursuant to the policies of the Exchange and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Offering may be classified as a "related party transaction." Kirrin anticipates that it will be able to rely upon exemptions from the related party requirements of MI 61-101.
Kirrin also confirmed that, in connection with its acquisition of the additional lands adjacent to its Grevet REE property (announced June 21, 2011), Kirrin issued 166,667 common shares in satisfaction of its first payment obligation of $10,000 of the total $25,000 due over the term under the option agreement.
William Gilmour B.Sc., P.Geo. is the designated Qualified Person for Kirrin and has reviewed the contents of this news release.
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 a Canadian green energy company that explores for rare earth elements and uranium. In addition to its exploration activities, Kirrin seeks to enhance its capitalization and the quality of its portfolio by utilising its management's broad industry and international experience in the identification of suitable rare earth elements and uranium companies and green energy assets for acquisition, merger, strategic partnership or 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.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to certain future results and activities of Kirrin, including the contemplated timing and completion of an equity financing. Readers are cautioned to not place undue reliance on forward-looking statements. Forward-looking statements are based on certain key assumptions made by Kirrin, including assumptions related to the ability of Kirrin to complete the equity financing in the anticipated timeframe or at all, the receipt of regulatory approval and the availability of capital and other resources to carry out planned exploration programs. Such forward looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results and developments to differ materially from those contemplated by these statements depending on, among other things, failure to complete the financing, failure to obtain regulatory approval and insufficient funds or other resources to carry out the planned exploration programs. The forward-looking statements in this press release are made as of the date of this release and Kirrin undertakes no obligation to update publicly or revise any forward looking statements whether as a result of new information or otherwise, except as required by applicable securities laws. Kirrin undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Kirrin or its financial or operating results or (as applicable) their securities.
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