Deal Capital Ltd.

April 25, 2007 12:53 ET

Deal Capital Increases Financing to $6 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 25, 2007) -


Deal Capital Ltd. (the "Company" or "Deal Capital") (TSX VENTURE:DCP.P) has increased the financing announced on April 11, 2007 by $1 million to a total of $6 million to accommodate additional sophisticated investors in the private placements.

As previously announced, Deal has engaged Pacific International Securities Inc. ("PI" or the "Agent") to act as the Agent for a brokered private placement and has now increased this portion of the financing to up to $3.25 million (the "Offering"). The Offering will now consist of the issuance of up to 6,500,000 subscription receipts of the Company (the "Subscription Receipts") at $0.50 per Subscription Receipt.

Each Subscription Receipt will be exercisable for no additional consideration into one unit of the Company (a "Unit") upon the meeting of the release conditions (the "Release Conditions"). Each Unit shall consist of one common share and one-half of a transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable into one additional common share of the Company at an exercise price of $1.00 per common share for a period of two years from the date the Release Conditions are met.

The additional funds to be raised by the Company in a non-brokered private placement with the same terms as the Subscription Receipts has been increased to $2.75 million or 5,500,000 Subscription Receipts. The Company may pay a finder's fees on a portion of this financing to qualified finders according to the same terms as for the brokered private placement.

All of the other terms of the financing remain the same. The additional funds will be allocated to additional exploration at the Santa Gertrudis Gold Project, payment of property holding costs, and for new projects.

The Santa Gertrudis Gold Project

The Santa Gertrudis Gold Project (the "SG Property"), located 180 km north of Hermosillo, Sonora, Mexico, was discovered in 1986 and advanced to open pit heap leach production in 1991. From May 1991 to October 2000, the SG Property produced 564,000 ounces of gold at an average grade of 2.13 grams per tonne. Phelps Dodge then sold part of the SG Property to Campbell Resources Inc. in 1994 for US$10 million. Campbell later ceased mining and processing activity due to low gold prices during the late 1990's and settled some outstanding debts by assigning several core area concessions, including the un-mined Cristina deposit, to certain local Mexican contractors ("Lopez-Limon"). The proposed transactions aim to re-consolidate these concessions, which will allow for a district-wide exploration program. Other mineral properties that are part of the SG Property package include the relatively high-grade Amelia Mine and recently staked ground to the west, northwest and southeast of the SG Project's historic workings. The Company will own directly, or have options to earn-in on, a combined holding of approximately 34,800 hectares in the SG Property (130 square miles).

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Winnie Wong, President & Director

Deal Capital Ltd. is a Capital Pool Company trading on the TSX Venture Exchange under the symbol "DCP.P".

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Deal Capital Ltd.
    Winnie Wong
    President & Director
    (604) 687-3520
    (604) 688-3392 (FAX)