Dundee Resources Limited

December 05, 2007 17:09 ET

Dundee Resources Limited to Acquire Interest in Helio Resource Corp.

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2007) - In accordance with regulatory requirements, Dundee Resources Limited ("Dundee Resources"), a subsidiary of Dundee Corporation (TSX:DC.A), announced today that it will, subject to receipt of all necessary approvals, alone or together with certain of its affiliates, acquire through a non-brokered private placement with Helio Resource Corp. ("Helio"), 7,000,000 units of Helio, at a price of $0.75 per unit (the "Private Placement"). Each unit is comprised of one common share and one half of one common share purchase warrant of Helio (each whole warrant a "Warrant") with each Warrant being exercisable for one common share of Helio at an exercise price of $0.85 per common share for a period of 24 months after the closing date, provided that if the closing price of the common shares of Helio on the TSX Venture Exchange is equal to or higher than $1.25 per common share for a period of 21 consecutive trading days at any time after four months and one day after the closing date, Helio may accelerate the expiry date of the Warrants by providing 30 days written notice. This will represent an approximate 16.29% interest or an approximate 22.17% interest in Helio assuming the conversion of Warrants.

The Private Placement is expected to close on or about January 15, 2008 subject to Dundee Resources' due diligence and TSX Venture Exchange approval. Furthermore, Helio is required to obtain majority shareholder approval for the Private Placement to be completed.

In addition, certain affiliates own or control or have control and direction over 1,360,500 common shares and 900,000 common share purchase warrants of Helio. Following the completion of the Private Placement, Dundee Resources and/or its affiliates will own and/or have control and direction over an aggregate of 8,360,500 common shares representing an approximate 19.46% interest and 4,400,000 common share purchase warrants representing an approximate 26.94% interest assuming the conversion of all warrants held by Dundee Resources and its affiliates.

The position in Helio to be acquired by Dundee Resources and/or its affiliates is for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation.

Dundee Resources is a wholly owned subsidiary of Dundee Corporation (TSX:DC.A) and carries out Dundee Corporation's resource investments and initiatives.

Contact Information

  • Dundee Resources Limited
    Ned Goodman
    (416) 365-5665
    Dundee Resources Limited
    Murray John
    President & Chief Executive Officer
    (416) 365-5645