New World Resource Corp.

New World Resource Corp.

June 09, 2009 12:13 ET

New World Announces $500,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2009) - New World Resource Corp. (the "Company") (TSX VENTURE:NW) announces, subject to regulatory approval and concurrent completion of the shares for debt transaction described below, a non-brokered private placement of up to 5,000,000 units (the "Units") at a price of $0.10 per unit for gross proceeds of up to $500,000.

Each Unit will comprise one common share and one common share purchase warrant, which will entitle the holder to purchase an additional common share at a price of $0.25 for a period of two years.

The Company has also reached an agreement to issue a total of 2,927,856 common shares at the deemed price of $0.09 per share for an aggregate value of Cdn$263,507 to Northern Lion Gold Corp. ("Northern Lion") in partial settlement of a debt owed to Northern Lion. The transaction is subject to regulatory approval and to concurrent completion of the private placement. The debt was incurred by way of a loan agreement, pursuant to which Northern Lion advanced Cdn$500,000 to the Company. The loan bears interest at a rate of 10% per annum. Upon completion of the shares for debt transaction and closing of the private placement, the balance of the principal and interest owing on the loan will be repaid to Northern Lion in cash. The shares for debt transaction is a Non-Arm's Length Transaction, as defined in the TSX Venture Exchange Corporate Finance Manual, as the Company and Northern Lion share two common directors and officers.

The proceeds of the private placement will be used to continue the advancement of the Company's Pastos Grandes lithium potash brine project in Bolivia, to repay outstanding debt and for general working capital.

About New World

New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the repayment of the Company's debt and the proposed use of proceeds for the non-brokered private placement. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.

Neither the 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 news release.

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