Aquiline Resources Inc.

Aquiline Resources Inc.

October 07, 2005 09:53 ET

Aquiline Completes $7.95 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Oct. 7, 2005) -


AQUILINE RESOURCES INC. Aquiline Resources Inc. ("Aquiline" or the "Corporation") (TSX VENTURE:AQI) announces that, subject to TSX Venture Exchange approval, it has completed a non-brokered private placement of 4,750,000 non flow-through units ("Non FT Units") of the Corporation at a price of $1.60 per Non FT Unit and 200,000 flow-through units ("FT Units") at a price of $1.75 per FT Unit for total proceeds of $7,950,000. The issue was taken down by, among others, institutions, certain insiders of the Corporation and a producer of silver.

Each Non FT Unit is comprised of one (1) common share of the Corporation and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Primary Warrant"), each Primary Warrant entitling the holder thereof to purchase one common share of the Corporation at an exercise price of $2.00 for a period of 12 months from the date of closing. In addition, if a subscriber exercises the Primary Warrant prior to its expiration, the subscriber will receive, for each Primary Warrant so exercised, an additional common share purchase warrant (a "Secondary Warrant"), each Secondary Warrant entitling the holder thereof to purchase one common share of the Corporation at an exercise price of $3.00 until the second anniversary of the date of closing. Each FT Unit is comprised of one (1) common share of the Corporation, which is a "flow-through share" within the meaning of section 66(15) of the Income Tax Act (Canada) and one-half of one Primary Warrant, which has the same "step-up" feature described above providing for the issuance of a Secondary Warrant for each Primary Warrant exercised prior to its expiration.

A finder's fee of 5% cash and 5% broker's warrants was paid to participating registered dealers, some of whom have elected to receive their commission in Non FT units. The private placement is subject to approval by the TSX Venture Exchange. The securities in the private placement are subject to a four-month hold period.

The proceeds from the Non FT Units will be used for the continued exploration and development of the Corporation's Calcatereu gold and silver project in Rio Negro Province, Argentina, including the completion of a 10,000 meter exploration drilling campaign more fully described in Aquiline's news release of September 29, 2005. The proceeds from the FT Units will be for expenditures on Aquiline's platinum group metal projects in the River Valley Area near Sudbury, Ontario.

The Corporation is also the plaintiff in a court action in British Columbia, Canada to recover title to the Navidad silver project in Chubut Province, Argentina which adjoins Rio Negro Province to the south. The trial in this matter is scheduled to commence next Tuesday October 11, 2005 in Vancouver, British Columbia and is expected to last approximately six weeks. Aquiline believes it has a very strong legal position and looks forward to the opportunity to finally assert its position in the appropriate forum.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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