EM Resources Inc.

July 28, 2006 15:09 ET

EM Resources Inc. Completes $180,000 Financing

TORONTO, ONTARIO--(CCNMatthews - July 28, 2006) - EM Resources Inc. announces that it has completed the sale of 1,200,000 common shares at $0.15 per share for gross proceeds of $180,000 pursuant to the final prospectus of EM Resources Inc. dated June 28, 2006. Of the shares sold, 550,000 common shares were sold on a flow-through basis at $0.15 per share for gross proceeds of $82,500. The common shares of EM Resources do not trade on any stock exchange or market quotation system.

Northern Securities Inc. acted as the agent on this financing and received a cash commission of $18,000 representing 10% of the gross proceeds of the financing, a work fee of $5,000 and a non-assignable agent's warrant to acquire 120,000 common shares at a price of $0.15 per share until 5:00 p.m. (Toronto time) on the date that is 24 months following the date of listing the common shares on a recognized stock exchange. As a result of the financing, EM Resources now has 1,900,000 shares issued and outstanding.

A portion of the offering was sold to a director of EM Resources, Dennis H. Peterson. Mr. Peterson acquired a total of 715,000 shares at $0.15 per share for a total purchase price of $107,250. For the purposes of National Instrument 62-103 early warning reporting, the address of Dennis H. Peterson is Suite 2500, 120 Adelaide Street West, Toronto, Ontario, M5H 1T1. Mr. Peterson did not exercise control or direction over any securities of EM Resources prior to the offering. As a result of the offering, Mr. Peterson owns 715,000 shares representing approximately 37.6% of the 1,900,000 issued and outstanding common shares. There are no shares or other securities of EM Resources subject to issuance other than the agent's warrants described above. Mr. Peterson has acquired the common shares of EM Resources for investment purposes, and has no current intention to increase the beneficial ownership of, or control or direction over, securities of EM Resources.

EM Resources has commenced its exploration program on the Muskasenda Project near Timmins, Ontario, as described in its prospectus dated June 28, 2006, which is filed on www.sedar.com. Further announcements will be made when results are available.

WARNING: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • EM Resources Inc.
    Dennis H. Peterson
    Director
    (416) 777-6772
    (416) 352-5693 (FAX)
    dhp@petelaw.com