The new financing has now closed, for better or for worse --
TRELAWNEY FINANCING OVERSUBSCRIBED AT $1.78 MILLION
November 14, 2006 - Toronto, Ontario - Trelawney Resources Inc. (TRR-TSXV) is pleased to announce the completion of a $1,781,100 non-brokered private placement through the sale of 9,627,567 flow-through units at $0.185 per unit. The units were sold to MineralFields Group which acquired 7,567,566 units, Bolder Investment Partners, Ltd. which acquired 1,000,000 units and individual investors that acquired the balance. Each unit consists of one flow-through common share and one common share purchase warrant and each warrant is exercisable into one common share at $0.40 in the first 12 months and at $0.60 in the following 12 months. If Trelawney shares trade at either $0.40 or $0.60 for 10 consecutive business days in the 12 month period in question, the Company may accelerate the expiry date of the warrants by giving notice to the holders that the warrants will expire on the 30th day after notice has been given. In connection with the offering, agents were paid finders fee totalling $79,250 and 685,405 two year broker warrants were issued exercisable at $0.185. The shares are subject to four month resale restrictions.
The proceeds of the financing will be used for drilling and exploration programs on the Company’s Dorset, Mishi, and Mishibishu Lake gold properties 50 kilometres northwest of Wawa, Ontario. Winter drill camps are now being assembled and will be mobilized to the property next week for set up and drilling will resume shortly thereafter.
Trelawney is the largest land holder in the entire mining camp with approximately 21,000 acres now under its control. The Company’s neighbour, gold producing Wesdome Gold Mines Ltd (WDO-TSX) holds approximately 16,000 acres. Trelawney has assembled the largest land package in this area since the Hemlo staking rush in the 1980s. The consolidated property contains over 48 known gold occurrences attesting to the potential of the Mishibishu greenstone belt.
The Company also wishes to advise that it has granted 1,350,000 options to officers, directors and consultants of the Company. The options are exercisable at $0.20 per share for a period of five years.
For further information contact:
Wayne J. O’Connor, President and CEO 416-361-2826 or wayne@trelawneyresources.com
Shares issued: 69,930,189 |
