SOURCE: GLR Resources

January 30, 2008 09:39 ET

GLR Resources Inc. Announces Private Placement Offering

KIRKLAND LAKE, ON--(Marketwire - January 30, 2008) - GLR Resources Inc. ("GLR" or the "Company") (TSX: GRS) announces that it has entered into an agreement to raise up to $4,000,000 (the "Offering") by way of a brokered private placement with M Partners Inc. (the "Lead Agent" and together with Blackmont Capital Inc. and Evergreen Capital Partners Inc., the "Agents") on a best efforts basis. The Offering will consist of the issuance of up to $2,000,000 of units of the Company (each, a "Unit") at a price of $0.40 per Unit and up to $2,000,000 of "flow-through" common shares of the Company (each, a "Flow-Through Share") at a price of $0.50 per Flow-Through Share.

Each Unit will be comprised of one common share of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant of the Company (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.60 for a 24-month period.

The Agents will be entitled to be paid a cash commission of 6% of the aggregate gross proceeds raised under the Offering. The Company will also grant to the Agents that number of non-transferable warrants (each, an "Agent Warrant") equal to 6% of the total number Units and Flow-Through Shares sold under the Offering. Each Agent Warrant will entitle the holder thereof to purchase one Unit (each, an "Agent's Unit") for a period of 24 months at an exercise price equal to the greater of: (i) $0.44; and (ii) lowest exercise price permitted by the Toronto Stock Exchange. Each Agent's Unit will be comprised of one Common Share and one-half of one Warrant.

The Offering is expected to close on or about February 14, 2008 or such other date as the Company and the Agents may agree and is subject to regulatory approval. The securities issued under the Offering will be subject to a hold period expiring four months and a day after the closing of the Offering.

The proceeds of the Offering will be used for (i) capital expenditure on the Company's Box Deposit, (ii) qualified Canadian Exploration Expenditures on the Company's Goldfields Property, and (iii) general working capital purposes.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.

Not for distribution to U.S. Newswire Service or for Dissemination in the United States.

Contact Information

  • Contact Information

    Robert Kasner
    President & CEO
    T: 1.705.567.5351
    E: Email Contact

    Malcolm Bucholtz
    V.P. Investor Relations
    E: Email Contact

    John Orr, P.Eng.
    E: Email Contact


    P.O.Box 546, 4 Al Wende Avenue,
    Kirkland Lake, Ontario P2N 3J5
    Tel: (705) 567-5351
    Fax: (705) 567-5557

    Saskatoon Office:
    515-45th St. West,
    Saskatoon, Saskatchewan,
    S7L 5X5 (306) 657-4549