|December 05, 2011|
Kirrin Postpones Private Placement
|Calgary, Canada: Kirrin Resources Inc. today announced that it is postponing the non-brokered private placement announced on October 20, 2011.|
Commenting on the announcement, Kirrin President and CEO Derek Moran said: "I believe investors expected this decision. Market conditions are more than unreceptive, one of Kirrin's advisors called them 'brutal'. We marketed the private placement as the first part of financing 10,000 metres of drilling across Kirrin's portfolio of two REE and two uranium projects in Canada. Indications of participation did not give the directors confidence that we could achieve that objective. Accordingly, we are postponing the private placement and subscriptions will be returned". Mr Moran added that Kirrin would review its plans for 2012 and examine what options were available to maximise shareholder value. He noted that Kirrin had already renegotiated much of its 2012 work obligations under option agreements but acknowledged that a further liability could arise as it was now unlikely that the Company would meet its entire flow-through expenditure obligation during 2011. All continuing commitments and expenditures would be reviewed in order to conserve cash resources.
Kirrin operates two REE properties, Grevet in Quebec and Bottom Brook in Newfoundland, both of which have returned encouraging exploration results with REE grades exceeding 15% TREO, and two uranium projects, in the eastern Athabasca Basin in Saskatchewan and in southeastern Labrador. Kirrin is also conducting due diligence on two new projects, a HREE property in Europe and a further uranium property in the Athabasca Basin in Saskatchewan.
Additional information on 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 utilises 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
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.
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 and strategic review. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are based on certain key assumptions made by Kirrin, including assumptions related to Kirrin's ability to complete the equity financing in a reasonable timeframe, the receipt of regulatory approval and the availability of capital and other resources to maintain operations and 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 maintain operations. 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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