GTO Resources Inc.

January 16, 2006 16:06 ET

GTO Resources Inc. Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2006) - GTO Resources Inc. ("GTO") (TSX VENTURE:GTR) is pleased to announce that it has arranged a private placement of 3,000,000 Units at $0.195 per Unit for total proceeds of $585,000. Each Unit is comprised of one common share and one transferable share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.26 per share for a period of one year. The Units will have a four month hold period from the date of issuance. A commission of 7.5% is payable upon closing. The closing of the private placement is subject to receipt of regulatory approval.

The proceeds of the private placement will be used to pay GTO's outstanding indebtedness and for working capital.

GTO is also pleased to announce that it is currently negotiating a settlement with its two remaining significant creditors who are owed, collectively, approximately $550,000. It is currently intended that, if agreed, GTO will pay, as soon as practicable, $0.50 for each dollar of indebtedness outstanding.

On closing of the private placement and settlement of the outstanding payables, including the two creditors previously described, GTO would have no material debt and a positive working capital position of approximately $250,000.

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

Contact Information

  • GTO Resources Inc.
    A. Murray Sinclair
    (604) 689-1428
    (604) 681-4692 (FAX)