Kria Resources

Kria Resources

November 29, 2007 08:17 ET

Kria Resources Raises $6.6 Million in Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2007) -


Kria Resources is pleased to announce the completion of a private placement for aggregate proceeds of $6.6 million. The placement involved the issuance of 5,087,500 units (the "Units") at a price of $1.00 per Unit and 1,522,500 common shares (the "Flow-Through Shares"), which qualify as "flow-through shares" for the purposes of the Income Tax Act (Canada), at a price of $1.00 per Flow-Through Share.

Each Unit consisted of one common share (a "Unit Share") in the capital of the Company and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share (a "Warrant Share") at a price of $1.25 for a period of two years following the issuance of the warrants.

The proceeds from the financing will be used for exploration and development of the Ruttan and Minago properties in Manitoba and for general corporate purposes provided that the gross proceeds from the sale of Flow-Through Shares will be used for exploration expenditures which qualify as Canadian exploration expenses for the purpose of the Income Tax Act (Canada) and will be renounced for the 2007 taxation year.

Mike Hoffman, President and CEO, stated "We are pleased at the response we received from investors during this fundraising and appreciate their support. It is evident that there is a keen interest in the development of the Ruttan Project and the other Kria assets. The capital raised during this financing will allow us to continue advancing our Manitoba assets."

The Offering was completed by a syndicate of underwriters led by Orion Securities Inc. and included Canaccord Capital Corporation and PI Financial Corp.

The Flow-Through Shares, Unit Shares, and Warrants are subject to an indefinite statutory hold period.

About Kria Resources

Kria Resources is a private base metal exploration and development company focused on zinc, copper and nickel. Kria is working to acquire a 100% interest in the Ruttan copper-zinc sulphide project and is earning a 60% interest in the Minago River nickel-copper-platinum claims in northern Manitoba. Please visit our website at for additional information.

Kria is led by a proven management team including Mike Hoffman as President and CEO (formerly of Yamana Gold and Goldcorp), Steve Davies as Vice President Operations and COO (formerly of Hudson Bay Minerals and Alex MacIntyre and Associates) and Dayle Rusk as Vice President Exploration (formerly of Goldcorp and Hudson Bay Minerals).

The Board of Directors includes Bruce Humphrey as Chairman (formerly of Goldcorp, Desert Sun Mining), David Gower (formerly of Falconbridge and currently President and CEO of Castillian Resources), Mike Hoffman and Stan Bharti (formerly Chairman of Desert Sun, director of a number of other public companies including Consolidated Thompson and Crowflight Minerals). Colin Benner, Vice Chairman of Lundin Mining has also agreed to act as an advisor to the Board of Directors.

Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to exploration prospects, the use of proceeds, and interest of the investment community in the Company. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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