Auracle Resources Ltd.

Auracle Resources Ltd.

April 14, 2011 19:05 ET

Auracle Resources Ltd. Announces Extension of Escrow Release Deadline for Subscription Receipts

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2011) - Auracle Resources Ltd. - As disclosed in the Company's press release dated November 29, 2010, on November 26, 2010 the Company issued 6,400,000 Subscription Receipts at a price of $0.20 per Subscription Receipt (the "Offering") pursuant to an Agency Agreement dated November 26, 2010 between the Company and Haywood Securities Inc. (the "Agent").

The Subscription Receipts are not exercisable unless and until the Issuer has obtained final approval to list its common shares on the TSX Venture Exchange and has delivered certain legal opinions to the Agent which conditions were to be satisfied by March 1, 2011 (the "Release Deadline"), or such later date as may be agreed by the Company and Agent, failing which the Subscription Receipts will be repurchased by the Issuer and the proceeds from the sale of the Subscription Receipts will be returned to the subscribers of the Offering.

The Company and the Agent determined that the release conditions will not be satisfied on or before the Release Deadline, and accordingly agreed to extend the Release Deadline from March 1, 2011 to April 15, 2011, or such later date as may be agreed by the parties. The Company and the Agent have now determined that the release conditions will not be satisfied on or before the revised Release Deadline of April 15, 2011 and accordingly have agreed to extend the Release Deadline from April 15, 2011 to May 31, 2011.

Notwithstanding the foregoing, the Company has granted each holder of Subscription Receipts the right to require the Company to repurchase all, but not less than all, of such holder's Subscription Receipts. This right can be exercised by providing written notice to the Company prior to 4:00 p.m. (Vancouver time) on April 21, 2011. The Company will repurchase the Subscription Receipts held by electing holders as of 9:00 a.m. (Vancouver time) on April 24, 2011.

ON BEHALF OF THE BOARD OF DIRECTORS,

Robin Forshaw, President

Cautionary Note: This news release contains forward-looking statements regarding the Company's intended use of proceeds from its private placement. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. There is no assurance that the Company will expend the proceeds of the private placement in the manner contemplated. Actual results may differ materially from those currently anticipated in such statements.

Contact Information

  • Auracle Resources Ltd.
    Robin Forshaw
    President
    604-682-1845