Caribou Resources Corp.

Caribou Resources Corp.

May 23, 2006 15:21 ET

Caribou Resources Corp. Announces $8.0 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - May 23, 2006) - Caribou Resources Corp., (TSX VENTURE:CBU), ("Caribou"), is pleased to announce that it has entered into a bought deal private placement financing with a syndicate of underwriters led by Acumen Capital Partners Limited and including Dundee Securities Corporation, to offer for sale common and flow through shares totaling $8,000,000.

The offering will consist of 1,304,348 common shares at a price of $2.30 per common share and 1,639,345 common shares issued on a flow through basis eligible for Canadian Exploration Expense at a price of $3.05 per flow through share, for total gross proceeds of $8,000,000.

Closing of the offering is expected to occur on or about June 6, 2006.

Caribou has also granted the syndicate an option, exercisable prior to closing, to increase the size of the offering by up to an additional $2,000,000 on the same terms and conditions. However, for every $5.00 of flow through shares placed, $3.00 of common shares must also be placed.

The flow through shares and common shares will be sold via private placement pursuant to applicable securities law exemptions.

The syndicate will receive a commission of 6.5 per cent of the gross proceeds.

Caribou intends to use the proceeds from the offering to reduce debt and finance its continuing 2006 exploration and development program.

This news release may contain forward looking statements. Actual results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities.

Contact Information

  • Caribou Resources Corp.
    Christina M. Fehr
    Vice Chairman & CEO
    (403) 539-4322
    Caribou Resources Corp.
    Ross Robertson
    President & COO
    (403) 539-4316
    Caribou Resources Corp.
    Suite 1545, 101 - 6th Ave SW
    Calgary Alberta T2P 3P4