January 7, 1998:$5 Million Private Placement Proposed For Nevada Gold Projects
Shawn Kennedy, President of X-Cal Resources Ltd. announces that the Company has entered into a financing
agreement with Yorkton Securities Inc. to sell up to 7,250,000 special warrants at a price of not less than $0.70, by
private placement to close by January 29, 1998. Each special warrant will be convertible into one common share and
one half warrant. Each whole warrant will allow for the purchase of an additional common share at $0.90 before July
29, 1999. The Company has undertaken to file a prospectus to allow conversion of the special warrants by June 18,
1998. These transactions are subject to regulatory approvals.
Proceeds from the proposed sale of special warrants will be used to advance the Company's Nevada gold projects.
X-Cal Resources recently announced a three year option to purchase 100 percent of the Amax Gold Sleeper area
mineral rights in Nevada. X-Cal is currently 50 percent owner of the mineral rights at Sleeper and controls 22,000
acres that surround and include the Sleeper mine site. The high grade history of the Sleeper gold mine is well
documented. (See news release dated November 19, 1997.)
In addition to the Sleeper Gold Project, X-Cal Resources also controls three other gold properties on the Battle
Mountain Trend in Nevada.
The initial proceeds from the offering are estimated at $5,075,000. If the warrants are exercised the total proceeds
will be $8,337,500.
Note: X-Cal Resources Ltd. can be referenced through the Standard & Poors Directory. The 1997 Annual Report is
available through X-Cal Resources Ltd.
TEL: (604) 662-8245 Shawn Kennedy, President FAX: (604) 688-7740 X-Cal Resources Ltd. |
