Newfoundland Goldbar Resources Inc.
TSX VENTURE : NGB

May 18, 2006 09:26 ET

Newfoundland Goldbar Resources Inc.: Private Placement to Raise $1,000,000

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - May 18, 2006) - Newfoundland Goldbar Resources Inc. (the "Corporation") (TSX VENTURE:NGB) announces that it proposes to issue by way of a non-brokered private placement, subject to regulatory approval, up to 20,000,000 units ("Units") at a price of $0.05 per Unit, for gross proceeds of up to $1,000,000. Each Unit consists of one Common Share of the Corporation and one Common Share purchase warrant ("Warrant"), with each Warrant entitling the holder thereof to acquire one Common Share of the Corporation at an exercise price of $0.10 per share for a period of 12 months from the closing date.

A finder's fee will be paid equal to 8% of the gross proceeds raised on the private placement.

Certain INSIDERS of the Corporation will sell Common Shares of the Corporation and the proceeds of such sale, after deduction of costs, will be used by the selling shareholders to purchase Units under the private placement.

The proceeds of the private placement will be used to satisfy debts, to pursue further business opportunities, and for general working capital.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Newfoundland Goldbar Resources Inc.
    Harold L. Wareham
    President and Chief Executive Officer
    (709) 576-7711
    (709) 576-2236 (FAX)