Verbina Resources Inc.
TSX VENTURE : VUR

March 31, 2010 14:17 ET

Verbina Resources Announces Completion of $1,000,000 Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - The Directors of Verbina Resources Inc. (TSX VENTURE:VUR) ("Verbina") are pleased to announce the closing of a non-brokered private placement financing for gross proceeds of $1,000,000. The private placement consisted of the sale of 5,000,000 Units sold at $0.10 per Unit for gross proceeds of $500,000, and the sale of $500,000 principal amount of Convertible Debentures. The convertible debentures are unsecured bearing interest at 10% per annum, payable quarterly, with a term of three years from closing with the principal convertible into Units at $0.125 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.15 for a period of three years (the "Warrant Term") from the closing of the transaction (the "Closing Date"), provided, however, that should the closing price at which the common shares trade, equal or exceed $0.30 for 15 consecutive trading days following the date that is four months and one day after the Closing Date, Verbina may accelerate the Warrant Term to the date which is 30 days following the date a press release is issued by Verbina announcing the reduced Warrant Term.

All securities issued in conjunction with the offering are subject to a hold period, which expires four months after closing. The Company intends to use approximately $250,000 of the net proceeds from the Private Placement to fund debt repayment obligations. The remainder of the proceeds after expenses of the issue will be for general corporate purposes. Finders were paid a cash commission of $100,000 and issued broker options to acquire 1,000,000 Units at a price of $0.125 per Unit for a period of three years after the Closing Date.

Pursuant to a prior Press Release it was announced that Kevin Coombes would be appointed the Secretary-Treasurer of Verbina. Mr. Coombes is unable to serve in this position. Paul Zyla has accepted the role of Secretary-Treasurer of the Company and will continue in his position as President and a director.

About Verbina:

Verbina is a mineral exploration company whose long-term objective is to build a diversified company focused on the acquisition, exploration and development of mineral properties. Additional information about the Company can be found in Verbina's final prospectus dated December 21, 2007 that has been filed and is available for review on SEDAR at www.sedar.com.

This news release contains certain forward looking statements which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Richmond does not undertake any obligation to update forward looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward looking statements.

Shares Issued and Outstanding: 12,812,167

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

Contact Information

  • Verbina Resources Inc.
    Paul Zyla
    President
    (416) 366-4227
    or
    Verbina Resources Inc.
    Kevin Swanborough
    Chief Financial Officer
    (416) 366-4227