Dundee Resources Limited

July 07, 2010 17:24 ET

Dundee Resources Acquires Interest in Premium Exploration Inc.

TORONTO, ONTARIO--(Marketwire - July 7, 2010) - In accordance with regulatory requirements, Dundee Resources Limited ("Dundee Resources") and CMP Gold Trust ("CMP Gold"), a trust sub-advised by an affiliate of Dundee Resources, announced today that they have acquired an aggregate of 16,000,000 units of Premium Exploration Inc. ("Premium Exploration") at a price of $0.25 per unit (each a "Unit") pursuant to Premium Exploration's previously announced brokered private placement financing (the "Private Placement"). Each Unit is comprised of one common share in the capital of Premium Exploration ("Common Share") and one-half of a common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share of Premium Exploration at an exercise price of $0.35 for a period of 18 months from the closing date of the Private Placement. In aggregate, these holdings represent an approximate 14.75% interest in Premium Exploration on an undiluted basis or an approximate 20.61% interest assuming the conversion of all Warrants held.

The position in Premium Exploration was acquired for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation.

ABOUT DUNDEE RESOURCES

Dundee Resources is a wholly owned subsidiary of Dundee Corporation (TSX:DC.A) and carries out Dundee Corporation's resource investments and initiatives.

Contact Information

  • Dundee Resources Limited
    Ned Goodman
    Chairman
    (416) 365-5665
    or
    Dundee Resources Limited
    Murray John
    President and Chief Executive Officer
    (416) 365-5645