DOT Resources Ltd.

DOT Resources Ltd.

February 18, 2010 07:00 ET

DOT Announces Proposed Financing

CALGARY, ALBERTA--(Marketwire - Feb. 18, 2010) - DOT Resources Ltd. (TSX VENTURE:DOT) ("DOT" or the "Corporation") announces that the Corporation intends on completing a private placement of up to 5,000,000 units to be allocated between flow-through units ("FT Units") at $0.225 per FT Unit and non-flow-through units ("Non FT Units") at $0.20 per Non FT Unit. The total number of FT Units and Non FT Units to be issued under the private placement has yet to be determined.

Each FT Unit will consist of one flow-through common share of the Corporation ("Common Share") issued on a flow-through basis and one non-flow-through Common Share purchase warrant (a "FT Warrant"). Each FT Warrant shall be exercisable into one Common Share for a period of two years from the close of the financing, at a price of C$0.30 per Common Share in year one and at a price of C$0.40 per Common Share in year two.

Each Non FT Unit will consist of one non-flow-through Common Share and one non-flow-through Common Share purchase warrant (a "Non FT Warrant"). Each Non FT Warrant shall be exercisable into one common share of the Corporation for a period of two years from closing of the financing, at a price of C$0.25.

It is anticipated that certain insiders of the Corporation will participate in the private placement. The private placement is subject to regulatory body approval, including the approval of the TSX Venture Exchange Ltd.

To date the Corporation has nonbinding commitments to purchase $500,000 of FT Units and $150,000 of Non FT Units ("Nonbinding Commitments").

Related to the Nonbinding Commitments, the Corporation will pay a cash finder's fee equal to 6% of gross proceeds raised pursuant to the issuance of the FT Units and Non FT Units as well as a finder's fee option ("Option") entitling the holder to acquire that number of compensation units ("Compensation Units") equal to 10% of the number of FT Units and Non FT Units issued. Each option shall be exercisable at a price of C$0.20 per Compensation Unit for a period of two years from the date of closing. Each Compensation Unit will consist of one non-flow-through Common Share and one non-flow-through Common Share purchase warrant. The warrants will have the same exercise price and terms as the Non FT Warrant issued under the private placement.

"We are very pleased with the results of the 2009/2010 drilling program recently completed and are anxious to continue to add to that success," stated Mr. John J. Komarnicki, Chairman and CEO of DOT. "Our ability to continue to attract investors to finance our exploration program is an indication to us that others share our views on the potential of the DOT property."

The proceeds of this financing will be used to continue the exploration program on the DOT property as well as for general working capital requirements.


DOT is a Canadian corporation currently focused on the exploration and development of its copper property in central British Columbia. The Corporation is planning to assess future copper and copper-gold properties for exploration and development opportunities throughout North and South America.

DOT shares trades on the TSX Venture exchange under the symbol DOT. The Corporation's website can be accessed at

Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning the obtaining of regulatory body approval, the completion of the private placement, the Nonbinding Commitments and other factors or events described in this news release should be reviewed as forward-looking statements to the extent they involve estimates thereof.

Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the inability to obtain regulatory body approvals; general market conditions and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual events or results to differ materially from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated of intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements should these beliefs, estimates and opinions or other circumstances change, except as required by applicable law. Investors are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • DOT Resources Ltd.
    Ihor P. Wasylkiw
    Chief Information Officer
    +1 (403) 264-2647
    DOT Resources Ltd.
    Donald D. McKechnie
    Chief Financial Officer
    +1 (403) 264-2647