Linear Metals Corporation
TSX VENTURE : LRM

Linear Metals Corporation

October 27, 2006 11:36 ET

Linear Metals Corporation: Proposed Non-Brokered Private Placement and Investor Relations Appointments

HALIFAX, NOVA SCOTIA--(CCNMatthews - Oct. 27, 2006) - Linear Metals Corporation (TSX VENTURE:LRM) is pleased to announce that it has negotiated, subject to regulatory approval, a non-brokered private placement consisting of up to 3,500,000 units at a price of $0.75 per unit, to qualified investors. Each unit will consist of one common share and one-half warrant, with each whole warrant entitling the holder to purchase an additional common share at a price of $1.00 per share for a period of eighteen months form the closing of the offering. The proceeds of the private placement will be used for working capital and to fund property acquisitions and exploration programs on the Company's portfolio of mineral properties.

Linear Metals is also pleased to announce that it has, subject to regulatory approval, engaged McKenzie Gate Ltd. ("McKenzie") as a marketing and investor relations consultant; DSK Consulting Ltd.("DSK") as its Canadian investor relations consultant; and Fuller Fletcher & Associates Limited ("FF&A") as its European investor relations consultant (collectively, the "Consultants"). Under the terms of their engagements, McKenzie will be responsible for designing and executing the Company's overall investor relations and marketing program, DSK and FF&A will assist in organizing presentations and communicating with institutional and individual shareholders and investors with DSK responsible for targeting the Canadian investment community, primarily in central and western Canada and FF&A targeting the European market.

Jim McKenzie is the principal of McKenzie Gate Ltd and is an experienced entrepreneur and business professional who will be responsible for developing and maintaining a focused and strategic marketing and investor relations program for the Company. Mr. McKenzie will work from Linear Metal's office and work closely with management to develop and promote the Linear Metals "brand" and to effectively and efficiently communicate the Company's progress to the marketplace.

DSK, based in Calgary, Alberta has been strategically planning, budgeting and implementing investor relations programs for publicly traded companies for more than ten years and has established an extensive list of contacts in the institutional investment management and stock brokerage communities throughout Canada. DSK will be focused on communicating with the Canadian investment community and upon request of the Company, organizing client roadshows throughout central and western Canada.

With over twenty years experience in the European financial markets, FF&A, based in London, England, has established an extensive list of contacts in the institutional investment management and stock brokerage communities. FF&A will be the conduit of information to the European investment community, keeping Linear's target audience informed of significant corporate developments and upon request of the Company, organizing client roadshows throughout Europe.

The consultants have been engaged through a series of agreements, initially, for a one-year period at an anticipated total cost of $95,000. In addition, the Company will grant to the consultants incentive stock options to purchase up to 450,000 shares of the Company at $0.60 per share. These stock options were included the press release dated August 30, 2006 and have been granted subject to TSX Venture Exchange approval.

As of this date DSK and its principal owns 50,000 common shares of the Company. McKenzie, FF&A and each of their principals do not, reportedly, own any shares of the Company at present.

Linear Metals Corporation is actively exploring for base metals and high-grade silver deposits in Mexico and Canada.

Brian MacEachen, Vice-President & Chief Financial Officer

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

Contact Information

  • Linear Metals Corporation
    Terry Christopher
    Manager Investor Relations
    (902) 422-1421
    Website: www.linearmetals.com