Kirrin Resources Inc.
TSX VENTURE : KYM

Kirrin Resources Inc.

December 02, 2010 08:00 ET

Kirrin Resources Announces $1.4 Million Flow-Through Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 2, 2010) - Kirrin Resources Inc. (TSX VENTURE:KYM) ("Kirrin" or the "Corporation") today announced further plans for financing exploration on its portfolio of rare earth element (REE) and uranium properties. Kirrin is proceeding with a non brokered private placement of up to 14,000,000 flow-through units ("FT Units") at a purchase price of $0.10 per FT Unit for aggregate gross proceeds of up to $1,400,000 (the "Private Placement"). Each FT Unit will consist of one flow-through common share and one-half of a common share purchase warrant ("Warrant"). Each full Warrant will be exercisable into one common share of the Corporation at a price of $0.14 per common share for 12 months from the date of issuance and $0.18 per common share for the following 12 months, subject to earlier expiry in certain circumstances. The Private Placement is subject to all necessary regulatory approvals, including the conditional approval of the TSX Venture Exchange (the "Exchange").

The proceeds from the Private Placement will be used for exploration on Kirrin's portfolio of REE and uranium properties. The Private Placement is expected to close on or about December 22, 2010, or such other date as agreed by Kirrin and approved by the Exchange. The securities issued pursuant to the Private Placement shall be subject to a four month hold period under applicable securities laws.

Finders will receive a finder's fee up to 7% of the gross proceeds of the sale of the FT Units that result from introductions by the finder, which fee will be payable in cash. Finders will also be issued non-transferable finder warrants (the "Finder's Warrants") exercisable to acquire that number of Common Shares (the "Finder's Warrant Shares") as is equal to 7% of the number of Units sold pursuant to the Private Placement that result from introductions by the finder. The Finder's Warrants will have an exercise price of $0.14 per Finder's Warrant Share for 12 months from the date of issuance and $0.18 per Finder's Warrant Share for the following 12 months, subject to earlier expiry in certain circumstances.

It is anticipated that certain directors, officers and other insiders of Kirrin may subscribe to the Private Placement. Pursuant to the policies of the Exchange and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Private Placement may be classified as a "related party transaction." Kirrin anticipates that it will be able to rely upon exemptions from the related party requirements of MI 61-101.

Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.

Kirrin is engaged in rare earth element and uranium exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through acquisition, merger, strategic partnership and joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.

To receive company news releases via e-mail, please advise nadine@chfir.com and specify "Kirrin News" in the subject line.

Forward-looking information: Except for statements of historical fact, all statements in this news release including, without limitation, future plans and objectives of the Company are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information and undue reliance should not be placed on it. The risk factors that could cause actual results to vary from results expressed or implied by the forward-looking statements contained in this press release are primarily events beyond Kirrin's control and may preclude Kirrin from satisfying all applicable pre-conditions. These forward-looking statements are made as of the date hereof and except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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.

Contact Information

  • Kirrin Resources Inc.
    Derek J Moran
    President
    27 82 440 3426
    or
    CHF Investor Relations
    Robin Cook
    Account Manager
    (416) 868-1079
    robin@chfir.com