Melkior Resources Inc.

Melkior Resources Inc.

December 08, 2006 15:49 ET

Melkior Increases Brokered Private Placement to Raise Up to $900,000

OTTAWA, ONTARIO--(CCNMatthews - Dec. 8, 2006) - Further to its news release dated November 30, 2006, Melkior Resources Inc. (TSX VENTURE:MKR) (the "Corporation") announces that it has increased the size of the private placement from a maximum of $750,000 to a maximum of $900,000. The brokered private placement with Investpro Securities Inc. ("Investpro"), subject to regulatory acceptance, is now arranged for a minimum of $500,000 to a maximum of $900,000. The financing will be comprised of Units (the "Units") issued at a price of $0.155 per Unit. Each Unit will consist of one flow-through common share and one-half (1/2) common share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder to acquire one common share at a price of $0.25 for a period of eighteen (18) months.

The proceeds from the private placement will be used to fund exploration of the Corporation's mineral interests: Kenty-Delta Ungava in Quebec (nickel, copper, platinum and palladium), Timmins West in Ontario (gold), Otish in Quebec (kimberlite and uranium) and Launay in Quebec (gold).

In consideration for its services, the Corporation will pay Investpro a corporate finance fee of $5,000 and a cash commission of 7% of the gross proceeds of the private placement. Investpro will also receive an agent's option for the purchase of common shares in the Corporation representing that number of common share equal to ten percent (10%) of the Units issued, exercisable at a price of $0.155 per common share for a period of eighteen (18) months. Pursuant to this option, Investpro will receive an agent option to acquire a minimum of 322,580 common shares and a maximum of 580,645 common shares.

The Private Placement is anticipated to close on December 15, 2006.

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)