Alder Resources Ltd.

May 18, 2010 12:47 ET

Alder Closes $3,875,000 Private Placement and Enters Into Definitive Agreement on La Montanita Colombian Gold Property Acquisition

TORONTO, ONTARIO--(Marketwire - May 18, 2010) - Alder Resources Ltd. ("Alder" or the "Company")(TSX VENTURE:ALR) is pleased to announce that it has closed its previously announced non-brokered private placement financing (see press release dated April 5, 2010). The private placement was oversubscribed such that the company raised a total of $3,875,000 through the issuance of 15,500,000 common shares of the Company at a price of $0.25 each.

The common shares are subject to a hold period of four months plus one day, which expires on September 7, 2010 pursuant to applicable securities legislation. The Company paid finder's fees in the amount of $232,500 in cash and issued 1,250,000 share purchase warrants at an exercise price of $0.25 for one year in connection with some of the funds raised by third parties.

The Company intends to use the net proceeds of the financing to fund the exploration and development of the Company's properties and for working capital purposes. The proceeds are expected to aid significantly in increasing the value of the La Montañita gold property (the "Property") near Medellin, Colombia. 

The Company has entered into a final binding agreement to acquire the Property, reflecting terms described in the press release dated April 7, 2010. In connection with this purchase the Company has received a National Instrument 43-101 compliant technical report (the "Report") by an independent qualified person. Highlights of the report include NI 43-101 compliant sampling of underground Au veins with grades of up to 186.5 grams per tonne gold, 272 grams per tonne silver and 0.93 percent copper.

Both the placement and the acquisition are subject to regulatory approval.

After taking into consideration this private placement and the acquisition, the Company has a total of approximately 39,700,000 common shares issued and outstanding.

About Alder Resources

Alder Resources is a Canadian-based company focused on gold. The Company holds an option to acquire a 60% interest in Cariboo Rose's Canadian Creek Mineral Property located in the Whitehorse Mining District of the Yukon Territory, which is 160 km south of Dawson City, Yukon. The property is also 50 km southeast of the White Gold project owned by Underworld Resources Inc. and approximately 25 km southeast of Kaminak Gold Corp.'s Coffee property. The Canadian Creek claims cover an area of approximately 4,800 hectares.

Regulatory Notes

Will Randall, a Director of the Company and a qualified person under NI 43-101, has reviewed the scientific and technical information in this press release. 

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the completion of the acquisition, the prospective nature of the Project and the impact of the acquisition on the Company; statements with respect to the development potential and timetable of the Project; the potential to identify mineral resources on the Project; the timing and amount of estimated future exploration, success of mining activities; and receipt of government approvals. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate the purchased properties; foreign operations risks; and other risks inherent in the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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 does not undertake to update any forward-looking information, except in accordance with 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 Release.

Contact Information

  • Alder Resources Ltd.
    Bruce Ford
    Director and President
    (416) 300-8023