Defiant Resources Corporation
TSX : DFR

Defiant Resources Corporation

December 04, 2006 09:30 ET

Defiant Resources Corporation Announces $2.6 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 4, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Defiant Resources Corporation (TSX:DFR) ("Defiant" or the "Company") today announced that it has entered into a bought deal financing agreement with a syndicate of underwriters led by Clarus Securities Inc. Pursuant to the terms of the agreement, 730,000 flow-through common shares will be issued on a "bought deal" private placement basis, at a price of $3.60 per flow-through common share for total gross proceeds of approximately $2.6 million. In addition, the underwriters have been granted the option to purchase up to an additional 675,000 flow-through common shares at the issue price at any time until the closing date, which, if exercised in full, will result in total gross proceeds of approximately $5.0 million. Insiders and associates of the Company have agreed to purchase $500,000 of the offering at the issue price.

The proceeds of the offering will be used to fund the Company's ongoing exploration activities eligible for C.E.E.

Closing is expected to take place on or about December 19, 2006, and is subject to normal regulatory approvals.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The common shares of Defiant have not 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 in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements - Certain information regarding Defiant Resources Corporation set forth in this document, including management's assessment of Defiant Resources Corporation's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Defiant Resources Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Defiant Resources Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Defiant Resources Corporation will derive therefrom.

Contact Information

  • Defiant Resources Corporation
    Rick J. Ironside
    President & Chief Executive Officer
    (403) 218-4104
    or
    Defiant Resources Corporation
    Rob Solinger
    Vice President, Finance & Chief Executive Officer
    (403) 218-4106