Kinbauri Gold Corp.
TSX VENTURE : KNB

Kinbauri Gold Corp.

December 04, 2006 09:58 ET

Kinbauri Announces Completion of $1M Private Placement

OTTAWA, ONTARIO--(CCNMatthews - Dec. 4, 2006) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB) is pleased to announce that it has completed a brokered private placement of $1,045,000 through the sale of 1,900,000 Units of Kinbauri at a price of $0.55 per Unit. Each Unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.75 until June 1, 2008. M Partners Inc. acted as agent and was paid an aggregate of $73,150 in connection with the offering and received broker warrants to purchase an aggregate 133,000 Units of Kinbauri at a price of $0.55 until June 1, 2008. The securities issued pursuant to the placement are subject to a four-month hold period.

The proceeds of this financing will be used for drilling at the Corcoesto gold project in northwestern Spain, due diligence and development planning at the El Valle/Carles project in northern Spain and for general working capital purposes.

Kinbauri is a mineral exploration company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. It currently has 11,429,189 common shares issued and outstanding and 13,524,689 fully diluted.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE.

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