Melkior Resources Inc.

Melkior Resources Inc.

December 19, 2006 08:00 ET

Melkior Completes $900,000 Brokered Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Dec. 19, 2006) - Melkior Resources Inc. (the "Corporation") (TSX VENTURE:MKR) is pleased to announce the completion of a brokered private placement offer led by Investpro Securities Inc. (the "Agent") for 5,806,452 units (the "Units") at a price of $0.155 per Unit for total gross proceeds of $900,000 (the "Offering").

Each Unit consists of one flow-through common share (the "Flow-Through Common Shares") and one-half of a common share purchase warrant (the "Purchase Warrants"). Each full Purchase Warrant entitles its holder to purchase one additional common share at a price of $0.25 for a period of 18 months from closing.

As consideration for acting as Agent, the Corporation has paid a cash commission of $63,000. In addition, the Agent received 580,645 Agent's Warrants (the "Agent's Warrants"). Each Agent Warrant is exercisable at a price of $0.155 into one common share of the Corporation for a period of 18 months from the Offering's closing date.

The Offering is subject to final TSX Venture Exchange acceptance for filing. All securities issued will be subject to a four-month hold period from the Offering's closing date expiring on April 19, 2007.

The proceeds from the private placement will be used to advance exploration on the Corporation's mineral interests:

- Kenty-Delta Ungava in Quebec (49%) (nickel, copper, platinum and palladium), which is co-owned with Xstrata Nickel (51%);

- Otish in Quebec (100%) (uranium and kimberlite) located less than 15km northwest of the Strateco Matoush uranium discovery and less than 2km north of COGEMA's Beaver lake uranium occurrence;

- Launay in Quebec (100%) (gold); and

- Timmins West in Ontario (100%) (gold), in the active Timmins camp.

Melkior is fortunate to have strategic property positions in several important mining camps.

Flow-through funds raised through the issuance of the Flow-Through Shares shall be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada) (the "ITA")) which qualify as a "flow-through mining expenditure" for purposes of the ITA and will be renounced for the 2006 taxation year.

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

Contact Information

  • Melkior Resources Inc.
    Jens E. Hansen
    613-828-7268 (FAX)