Ressources Appalaches inc.

Ressources Appalaches inc.

December 20, 2007 09:57 ET

Ressources Appalaches Completes a Private Placement of $504,000

RIMOUSKI, QUEBEC--(Marketwire - Dec. 20, 2007) - Ressources Appalaches (TSX VENTURE:APP) has completed a private placement of $504,000 with Northern Precious Metals 2007 - Limited Partnership and Northern Precious Metals 2007 - II Limited Partnership. Pursuant to this placement, Ressources Appalaches has issued 2,800,000 flow-through common shares at a price of $0.18 per share and 1,400,000 common share purchase warrants, each giving the right to subscribe for one common share.

Each common share purchase warrant can be exercised at a price of $0.20 per share until June 18, 2009. If the common shares of Ressources Appalaches have a closing price equal to or greater than $0.35 per share for a period of 10 consecutive trading days at any time after April 19, 2008, Ressources Appalaches will have the right to notify the warrant holders in writing of its intention to change the exercise price of the warrants. Upon receipt of such notice, the holder will have 10 business days to exercise its warrants, failing which their exercise price will be automatically adjusted to $0.30 until their expiration.

In connection with this placement, Northern Precious Metals Management acted as the broker, and has been paid the due diligence fees of 6% of the aggregate gross proceeds.

These securities will be subject to a hold period until April 19, 2008. The investment proceeds will be used by Ressources Appalaches for exploration work. Further to the placement, Ressources Appalaches currently has 57,757,153 issued and outstanding common shares.

The TSX Venture Exchange accepts no responsibility regarding the truthfulness or accuracy of this press release.

Contact Information

  • Ressources Appalaches Inc.
    Andre Proulx
    Ressources Appalaches Inc.
    Samuel Saint-Laurent
    Investor Relations