Kokanee Minerals Inc.
TSX VENTURE : KOK

October 08, 2010 16:30 ET

Kokanee Minerals Inc. Fully Subcribes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2010) - KOKANEE MINERALS INC. (TSX VENTURE:KOK) (the "Company") has fully subscribed its private placements for the sale of 7,500,000 units raising a total of $1,125,000. Each unit offered at $0.15 per unit consists of one common share of the Company and one non-transferable share purchase warrant, and each share purchase warrant shall have a two year term from the date of issuance for the purchase of one further common share of the Company at the exercise price of $0.20 in the first year and thereafter $0.25 in the second year.

Kokanee Minerals Inc. reports that based on its experience and presence in Tanzania the Company has been offered a prospective property adjacent to the Canaco property in the Handeni area of Tanzania. The property consists of approximately 65 square kilometers immediately north of the north boundary of Canaco property. The south boundary of the property is approximately 10-12 kilometres north of the Magembazi Zone.

The Company's director and Vice President of Exploration has visited the area this past week to ascertain the position of the property and the geology. He has directed his geological team to carryout preliminary investigations in the next week. However he has reported that several of the prominent ridges associated with the Magembazi zone and the dark red soil also associated with the zone are present on this property and has recommended the property acquisition.

The Company is currently negotiating the terms to acquire an option to purchase a 80% interest in the property. The basic terms under negotiation by which the option may be exercised by Company are as follows:

  1. paying $275,000 and issuing 1,466,666 common shares within 5 days of TSX Venture Exchange approval of the transaction ("Exchange Approval");
  2. paying $600,000 and issuing 1,466,666 common shares on or before 13 months from Exchange Approval;
  3. issuing an additional 1,466,666 common shares on or before the 2nd anniversary of Exchange Approval;
  4. incurring $350,000 in exploration expenditures in the first year after Exchange Approval; and
  5. incurring an additional $750,000 in exploration expenditures on or before the second anniversary of Exchange Approval.

Negotiations are on-going.

This release has been reviewed by Laurence Stephenson P.Eng. the designated Qualified Person.

On behalf of the Board of Directors

"Antonia Bold de Haughton"

Antonia Bold de Haughton

Director

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the content of this press release.

Contact Information

  • Kokanee Minerals Inc.
    809 27 Alexander Street
    Vancouver, BC V6A 1B2
    Canada
    778-994-6453