General Properties Ltd.

General Properties Ltd.

June 04, 2007 12:53 ET

General Properties Announces Non-Brokered Private Placement Offering

CALGARY, ALBERTA--(Marketwire - June 4, 2007) - General Properties Ltd. (TSX VENTURE:GPL) (the "Corporation") is pleased to announce the terms of a proposed financing. The Corporation proposes to undertake a non-brokered private placement offering of the following securities:

- Up to 1,700,000 common shares of the Corporation to be issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.60 per Flow-Through Share.

- Up to 1,700,000 equity units (the "Units") at a price of $0.60 per Unit, each Unit consisting of one (1) common share of the Corporation and one (1) common share purchase warrant (the "Warrants"), each Warrant entitling the holder thereof to purchase one (1) commons share of the Corporation at $0.95 per share for a period of 12 months from the issuance of the Warrant. The Warrants will carry a feature whereby, in the event that the common shares of the Corporation, through the Corporation's principal trading market, trade at a price of $0.95 or more for a period of 20 consecutive days (the "Trading Period"), the Corporation will have the right to accelerate the exercise period for the Warrants to 30 days from the end of such Trading Period.

The net proceeds from the proposed private placement will be used to undertake additional exploration in respect of the lands (the "Lands") covered by the 32 Metallic and Industrial Mineral Permits held by the Corporation, such permits covering an area of approximately 213,206 hectares (823.2 square miles) in the Peace River area of northern Alberta, and for general corporate purposes. The Corporation proposes to conduct up to 5,000 meters of exploratory drilling on it's Rambling Creek and South Whitemud Lake prospects as well as other exploration on the Lands.

Closing of the private placement is targeted for June 30, 2007 or such other date as the Corporation determines. The proposed private placement by the Corporation is subject to approval by the TSX Venture Exchange.

The Corporation is a mining exploration and development company with holdings in northern Alberta, Canada. Information about the Corporation can be found at .

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release and has neither approved nor disapproved the contents of this press release.

Contact Information

  • General Properties Ltd.
    Robert B. Knight
    Chief Operating Officer and Chief Financial Officer
    (403) 531-2088 or Cell: (403) 804-5200
    (403) 531-2099 (FAX)