Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

December 22, 2011 07:30 ET

Challenger Announces Closing of Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2011) - Challenger Deep Resources Corp. (TSX VENTURE:CDE) ("Challenger" or the "Company") announces that it has successfully closed its previously announced non brokered private placement consisting of 2,250,000 units for gross proceeds to the Company of $1,350,000 (the "Private Placement"). All of the units were sold to arm's-length investors at a purchase price of $0.60 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share of the Company at any time until December 21, 2013 and is exercisable at a purchase price of $0.75 per share. All securities issued in connection with the Private Placement are subject to a four month plus one day hold period. Finder's fees of $64,323 cash and 107,205 finder's warrants were paid to eligible parties in connection with the Private Placement. The finder's warrants have the same terms as the warrants issued under the Private Placement. The proceeds from the Private Placement will be used for the continued exploration and development of the Company's Tabang Coal Project in East Kalimantan, Indonesia and for general corporate purposes. The completion of the Private Placement is subject to final approval from the TSX Venture Exchange.

About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the Indonesian coal industry. Challenger's business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

READER ADVISORY

Statements in this press release may contain forward-looking information including, statements regarding the expected use of proceeds from the Private Placement. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration permits, surface access and other licenses from Indonesian regulatory authorities, preliminary exploration results, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed exploration programs in Indonesia or other project acquisitions will be completed or, if completed, will be successful.

The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

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 of accuracy of this news release.

Contact Information

  • Challenger Deep Resources Corp.
    Ranjeet Sundher
    President
    +65-6220-7745

    Challenger Deep Resources Corp.
    Kirk Gamley
    Investor Relations
    604-689-7422

    Challenger Deep Resources Corp.
    Mas Kobuchi
    Investor Relations
    604-689-7422
    www.challengerdeep.ca