Explorator Resources Inc.

Explorator Resources Inc.

July 09, 2007 10:35 ET

Cormark Securities to Lead Explorator Resources Private Placement Financing

TORONTO, ONTARIO--(Marketwire - July 9, 2007) -


Explorator Resources Inc. ("Explorator", or the "Corporation") (TSX VENTURE:EXO) announces that the Corporation has entered into an agreement with Cormark Securities Inc. (the "Agent"), as lead agent, along with a syndicate of agents including Blackmont Capital Inc. and Canaccord Capital Corp., to sell on a best efforts basis up to 13 million units (the "Units") (the "Offering"). Each Unit will consist of one common share in the capital of the Corporation (a "Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each whole Warrant shall entitle the holder thereof to purchase one Common Share for a period of 18 months following the closing date. The price of the Units (the "Offering Price") and the exercise price of the Warrants will be determined by the Corporation and the Agents in the context of the market.

In addition the agents have been granted an option exercisable up to the closing date to sell 1,950,000 additional Units at the Offering Price.

Closing of the offering is anticipated to occur on or before August 2, 2007 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.

The Common Shares and Common Shares issuable upon exercise of the Warrants will be subject to resale restrictions for a period of four months plus one day from the closing date. The Agents will receive a commission of 6.0% of the gross proceeds raised in the Offering. The Agents will also receive broker warrants (the "Broker Warrants") equal to 6% of the number of Units purchased. Each Broker Warrant will entitle the Agents to purchase one Unit at the issue price of the Units for a period of 18 months following the closing date.

The proceeds of the financing will be used for exploration, drilling, engineering and resource studies and property payments for the Corporation's El Espino property in Chile.


Explorator Resources is a Canadian-based mining exploration company focused on building a strong position of copper-gold projects in South America. Explorator is initially concentrating its efforts in the mineral rich Corderilla de la Costa province in Chile. The Corporation's El Espino Project lies within this prolific copper-gold mineral area and is central to an important cluster of copper-gold deposits. El Espino is located in the Illapel district, approximately 3.5 hours drive north of Santiago. The Corporation recently announced plans to acquire the adjacent Venus-Marcelo claim block immediately north of El Espino (see release dated May 15, 2007).

The Venus-Marcelo block covers 132 hectares and is host to major gold and copper mineralized structures on which six currently small active mines have been developed.

Forward-Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding completion of the potential financing of Units and the Corporation's intended use of proceeds from the financing.

Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include: failure to successfully negotiate or subsequently close such transactions, inability to obtain required regulatory approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Corporation's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory approvals for Explorator's proposed transactions, and the ability of management to successfully consummate the proposed transactions. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially."


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