Melkior Resources Inc.

Melkior Resources Inc.

March 13, 2007 10:00 ET

Melkior Resources Inc. Completes a $1,460,800 Private Placement

OTTAWA, ONTARIO--(CCNMatthews - March 13, 2007) - Melkior Resources Inc. (the "Melkior")(TSX VENTURE:MKR) is pleased to announce the closing of a first tranche of a private placement consisting of 3,320,000 units (the "Units") at a price of $0.44 per Unit for total gross proceeds of $1,460,800.

Each Unit consists of one common share (the "Common Shares") and one-half of a common share purchase warrant (the "Purchase Warrants"). Each full Purchase Warrant entitles its holder thereof to purchase one additional common share at a price of $0.60 for a period of 18 months from the first date of closing.

The Purchase Warrants will be subjected to an accelerated expiry if, on or after the date that is four months and one day from the closing, the volume weighted average price of the common shares on the TSX Venture Exchange is at least $0.80 for any period of 20 consecutive trading days. Melkior may then, within five business days of such 20 trading day period, provide notice by press release to the holders of Purchases Warrants (the "Accelerated Expiry Notice") that the Purchases Warrants shall terminate on the earlier of the date that is 25 days following the date of the Accelerated Expiry Notice or the Purchase Warrants expiry date.

Upon regulatory approval, Melkior has agreed to pay a finder's fee of $75,600.

The private placement is subject to final TSX Venture Exchange acceptance for filing. All securities issued under the private placement will be subject to a four-month hold period expiring on July 14, 2007.

The proceeds from the private placement will be applied to advance uranium exploration on the recently announced Otish acquisitions, to fund exploration on the Kenty Lake Property and for general working capital purposes.

Melkior has received approval from the TSX Venture Exchange to increase the original placement from 4,000,000 units to 4,500,000 units. The additional units will be subject to a second closing of 1,180,000 units. The additional funding will enable Melkior to accelerate exploration on the Otish uranium property.

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)