Melkior Resources Inc.
TSX VENTURE : MKR

Melkior Resources Inc.

November 30, 2009 17:32 ET

Melkior Announces Private Placement

OTTAWA, ONTARIO--(Marketwire - Nov. 30, 2009) - Melkior Resources Inc. (TSX VENTURE:MKR) (the "Company") is pleased to announce that the TSX Venture Exchange (the "TSXV") has conditionally accepted a brokered private placement ("Brokered Private Placement") of up to $3,000,000 consisting of units (the "Units") at a price of $0.30 per Unit and flow- through shares (the "Flow-Through Shares") at a price of $0.33 per Flow-Through Share, and a non-brokered private placement ("Non-Brokered Private Placement") of up to $600,000 consisting of Units. The Units shall consist of one common share of the Company (a "Common Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant shall entitle the investor to purchase one additional Common Share at an exercise price of $0.40 per Common Share during the first year after closing, and at an exercise price of $0.50 during the second year after closing.

The Company has engaged M Partners Inc. and Investpro Securities Inc. as co-lead agents (the "Agents") to source subscribers on a best efforts basis for the Units and Flow-Through Shares offered for sale under the Brokered Private Placement, up to an amount of $3,000,000. The Agents will receive (i) a cash commission of 7% based on the gross proceeds received from the sale of Units and Flow-Through Shares, (ii) broker warrants to acquire such number of Common Shares equal to 10% of the aggregate number of Units sold under the Private Placement at an issue price of $0.30 per Common Share, and (iii) broker warrants to acquire such number of Common Shares equal to 10% of the aggregate number Flow-Through Shares sold under the Private Placement at an issue price $0.33 per Common Share. All broker warrants will be exercisable for a period of 24 months from the closing date.

In addition, the Company has granted the Agents an over-allotment option to increase the size of the Brokered Private Placement by an additional 15% of the number of Units and Flow-Through Shares for a total additional consideration of not more than $450,000 sold as either Units or Flow-Through Shares.

The Flow-Through Shares will entitle the subscriber to the income tax benefits of the qualifying Canadian Exploration Expenses incurred by the Company.

For the Non-Brokered Private Placement, the Company may issue up to 2,000,000 Units for a total of up to $600,000 to certain accredited investors. No compensation will be paid to the Agents for proceeds raised under the Non-Brokered Private Placement.

Flow-Through Share proceeds will be used for qualified Canadian Exploration Expenditures on the Company's Canadian based properties and Unit proceeds will be used for further development of the Company's properties and for general corporate purposes.

The Brokered Private Placement and the Non-Brokered Private Placement are subject to regulatory approval, including final approval by the TSXV.

Investors are invited to visit the Melkior IR Hub at http://agoracom.com/ir/Melkior where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to MKR@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

About Melkior:

Melkior is a junior exploration company with active exploration projects in West Timmins and the Mc Faulds "Ring of Fire" areas of Ontario. Melkior also holds a 49% interest in the Delta Kenty nickel-copper-platinum-palladium deposit in Ungava and has several other gold properties in Ontario and Quebec.

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

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Melkior's periodic reports including the annual report or in the filings made by Melkior from time to time with securities regulatory authorities.

Contact Information