Greenock Resources Inc.
TSX VENTURE : GKR

Greenock Resources Inc.

October 08, 2010 17:48 ET

Greenock Resources: Equity Issue and Debt Conversion

TORONTO, ONTARIO--(Marketwire - Oct. 8, 2010) - Greenock Resources Inc. (TSX VENTURE:GKR) ("Greenock") announces that that the corporation is completing a private placement equity issue for $175,000. Coincident with this transaction Greenock is also completing a shares for debt conversion for $437,532. The purpose of these transactions is to strengthen Greenock's balance sheet and provide capital to advance corporate mineral development projects.

The private placement equity issue is priced as a $3,500 unit for 50,000 common shares and 50,000 warrants. The common shares are priced at $0.07 cents per share with every 2 warrants convertible into one common share for a 24 month period at an exercise price of $0.10.

The shares for debt conversion is priced at $0.07 cents per share. The debt is primarily unpaid management fees, salaries and professional services that have accrued but are unpaid since early 2009. All debt owed to current management of Greenock in the amount of $383,210 is subject to disinterested shareholder approval at Greenock's upcoming shareholder meeting.

Greenock is holding an Annual and Special meeting on November 9, 2010, 10:30 am at 80 Richmond Street West, Suite 1101, Toronto ON. Existing shareholders and potential investors are welcome to attend a presentation on the future of Greenock Resources Inc. 

ABOUT GREENOCK

Greenock Resources Inc. (formerly Simberi Mining Corporation) is a Canadian based international mineral development company that focuses on developing a portfolio of natural resource properties. 

Greenock's main development project is the Kakanda Copper/Cobalt project in the Democratic Republic of the Congo that is a joint venture with Gécamines, the Congolese state mining company. This copper/cobalt deposit in the Central African Copper Belt is adjacent to the Tenke Fungurume project presently being developed by Freeport McMoRan Gold & Copper Company and Lundin Mining Corporation.

The Kakanda tailings project has NI 43-101 measured and indicated resources of 18.5 million tonnes with an average grade of 1.25% copper and 0.15% cobalt. Adjacent hard rock deposits have a historical resource of 18.6 million tonnes with an average grade of 3.19% copper and 0.19% cobalt.

The company holds a 100% interest in the Needles gold/silver property located in the Arrowhead mining district Nye County, Nevada. This property is approximately 40 miles southeast of the Barrick – Kinross Round Mountain Gold Mine that has had historical underground mining for gold and silver in the early 1920's.

Greenock's holdings in Australia include the nickel and platinum group metal exploration property Merlot and a shareholding in the uranium exploration company Raisama listed on the Australian Stock Exchange. Raisama has acquired a number of high potential exploration projects including Lambina from Greenock and the Sunday Creek uranium property in Western Australia that is adjacent to the Kintyre uranium property currently being developed by Cameco.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Michael Newbury, P.Eng., is the qualified person who has reviewed this material on behalf of the Company. All dollar amounts are noted in Canadian dollars unless otherwise stated in this release.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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