Conquest Resources Limited
TSX VENTURE : CQR

Conquest Resources Limited

December 07, 2006 08:30 ET

Conquest Resources Limited: Private Placement Financing of $376,500 Drilling Planned for King Bay

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Conquest Resources Limited (TSX VENTURE:CQR) reports that it has agreed, subject to regulatory approval, with MineralFields and others, for the private placement of 2,896,153 Units at a subscription price of $0.13 per share. Each Unit will be comprised of one flow-through common share and one transferable non-flow-through share purchase warrant. Each share purchase warrant will entitle the holder to purchase one common share of Conquest at an exercise price of $0.20 per share within the first twelve months and at an exercise price of $0.30 per share after the first twelve month period and before the end of twenty-four months. MineralFields shall receive a 5% cash finder's fee plus reimbursement of due diligence and other expenses together with compensation options, valid for a period of twenty-four months, to purchase Units on the same terms as the Unit placement, equal in number to 10% of the units subscribed for by MineralFields.

Insiders of the Corporation have subscribed for 588,463 Units of the placement (representing 20.3%). The gross proceeds of the placement will be used for the exploration of the Company's King Bay Project at Sturgeon Lake, Ontario.

Conquest is further pleased to announce that it has crews working to enhance ice thickness at King Bay in preparation for a follow-up winter drill program at the King Bay gold project with drilling planned to start in mid- to late January, 2007.

Earlier this year, one hole drilled from the ice of King Bay intersected a quartz-feldspar porphyry stockwork containing visible gold, with the most significant interval returning 22.7 g/t gold over 0.3 meters, which included a "best assay" of 43.0 g/t gold over 0.1 metre, all within a 1.07 metre interval averaging 6.86 g/t gold. These results suggest a possible source for the high-grade gold values contained in blue-black quartz veins discovered in float boulders of altered quartz-feldspar porphyry on the south shore of King Bay on Sturgeon Lake. Historic high-grade gold values reported by previous owners of the property occur in three distinct "boulder trains" with a highest value of 521.1 g/t gold (15.2 ounces per ton) while the average grade of boulders sampled from the central boulder train is 18.2 g/t gold (0.53 ounce per ton) while the eastern boulder train averages 18.9 g/t gold (0.55 ounce per ton) and the western boulder train averages 5.14 g/t gold (0.15 ounce per ton).

Conquest plans to complete approximately 1,500 metres of drilling from the ice of King Bay as an initial follow-up program.

ABOUT CONQUEST

Conquest is exploring several gold projects in Ontario. These include the Alexander gold project at Red Lake, the King Bay gold project at Sturgeon Lake, the Smith Lake gold project at Missanabie, and the Aurora, Sunday Lake and Nash Creek gold projects at Detour Lake. Conquest is also evaluating near-term gold-silver production opportunities in the Americas. Cash and short-term investments at September 30, 2006 amounted to approximately $1.1 million. There are currently 59,767,677 shares of Conquest issued and outstanding.

WARNING: The Company relies upon litigation protection for "forward-looking" statements.

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

Contact Information

  • Conquest Resources Limited
    Terence N. McKillen
    President & CEO
    (416) 362-8243
    (416) 368-5344 (FAX)
    or
    Conquest Resources Limited
    D. Brett Whitelaw
    Vice-President
    (778) 836-5891
    or
    Conquest Resources Limited
    John F. Kearney
    Chairman
    (416) 362-6686
    or
    Conquest Resources Limited
    David Ellis
    Investor Relations
    (416) 362-2435 or (416) 704-0937
    Email: info@conquestresources.net
    Website: www.conquestresources.net