Defiant Resources Corporation
TSX : DFR

Defiant Resources Corporation

September 28, 2005 14:20 ET

Defiant Resources Corporation Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - Sept. 28, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Defiant Resources Corporation (TSX:DFR) ("Defiant Resources Corporation" or the "Company") today announced that it has entered into a common share and flow-through share financing agreement, on a bought deal basis, with a group of underwriters co-led by Dundee Securities Corporation and Clarus Securities Inc. Defiant Resources Corporation will issue 2,298,851 common shares at $4.35 per share and 892,858 common shares to be issued on a flow-through basis at $5.60 per share for total gross proceeds of approximately $15,000,000 pursuant to certain exemptions from prospectus requirements. Defiant will renounce to purchasers of flow-through shares Canadian Exploration Expense effective in 2005 equal to $5.60 per flow-through share purchased. The private placement is expected to close on October 13, 2005, and is subject to regulatory approval and completion of definitive documentation.

Proceeds of the common shares offering will be used to fund the Company's expanded 2005 and 2006 capital program.

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.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The shares have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an exemption from registration.

Contact Information

  • Defiant Resources Corporation
    David J. Evans
    Chairman of the Board & C.E.O.
    (403) 218-4101
    or
    Defiant Resources Corporation
    Rick J. Ironside
    President & COO
    (403) 218-4104
    or
    Defiant Resources Corporation
    Timothy V. Dunne
    V.P., Finance & C.F.O.
    (403) 218-4111