General Properties Ltd.

General Properties Ltd.

October 19, 2006 11:36 ET

General Properties Ltd. Announces Closing of Private Placement of Units

CALGARY, ALBERTA--(CCNMatthews - Oct. 19, 2006) - General Properties Ltd. (TSX VENTURE:GPL) (the "Corporation") is pleased to announce that yesterday it closed its previously announced non-brokered private placement. The Corporation issued 5,000,000 equity units ("Units") at a price of $0.10 per Unit. Each Unit is comprised of one common share of the Corporation and one common share purchase warrant (a "Warrant"), each Warrant entitling the holder thereof to acquire an additional common share in the capital of the Corporation at a price of $0.20 for a period of 12 months from the closing of the private placement, subject to the Corporation having the right to accelerate the expiry date of the Warrants in the event the trading price of the common shares of the Corporation be at or exceed $0.20 per share for 20 consecutive trading days.

Total gross proceeds of the private placement were $500,000. The net proceeds of the private placement will be used to investigate additional investments, to pursue the transaction with CaNev Resources Corporation, as described in the Corporation's press release dated March 2, 2006, and for general working capital.

All securities are subject to a hold period and may not be sold or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until February 19, 2007.

The Corporation continues to work on its change of business transaction involving the acquisition by the Corporation of all of the issued and outstanding common shares of Clear Hills Iron Inc. and Peace River Energy Ltd., as announced in the Corporation's news release dated August 18, 2006.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • General Properties Ltd.
    Robert B. Knight
    President and Chief Executive Officer
    (403) 531-2088
    (403) 531-2099 (FAX)