METANOR RESOURCES INC.

METANOR RESOURCES INC.

March 11, 2005 09:43 ET

Metanor Resources Inc.: Initial Closing and Second Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: METANOR RESOURCES INC.

TSX VENTURE SYMBOL: MTO

MARCH 11, 2005 - 09:43 ET

Metanor Resources Inc.: Initial Closing and Second
Private Placement

VAL-D'OR, QUEBEC--(CCNMatthews - March 11, 2005) - Metanor Resources
Inc. (TSX VENTURE:MTO) is declaring that it has began to receive the
first subscription resulting from the private placement announced on
March 9 (cf press release disclosed on March 9, 2005) with European
Investors. On March 10th (yesterday), an initial closing for 684 996
Units at a price of $0.60 per Unit was done, raising $410,980. Further
closing are planned by March 24, 2005. Each Unit is comprised of one
(1) Common Shares and one (1) Common Share purchase Warrant, which
warrant is exercisable into one Common Share of the Company at an
exercise price of $0.85 at any time up to September 10, 2006.

Metanor will perform a second private placement of a maximal amount of
$4,500,000. For this private placement, a maximum of 7,500,000 Units
can be subscribed at the price of 0,60$ per Unit. Each Unit is
comprised of one (1) Common Shares and one (1) Common Share purchase
Warrant, which warrant is exercisable into one common share of the
Company at an exercise price of $0.85 for eighteen months from the date
of its issue. The closing date is no later than March 28, 2005. The
Securities issued in virtue of the placement will be subject to certain
resale restrictions imposed under the Applicable Securities Laws, which
require that the Securities not be traded for a period of four (4)
months from the Closing. For this placement, Hythe Securities Limited
is designated as Agent and will receive a fee of 8% of the gross
proceeds of the sale of the Units and as additional consideration,
broker Warrants, equal to 10% of the total proceed of the placement,
each warrant entitling it to acquire one Common Share at the price of
$0.75 within 18 months following the closing.

The proceeds of the subscription will be used for: Development work on
Bachelor Lake Property, exploration work on the other properties of
Metanor and for the working capital of Metanor.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Metanor Resources Inc.
    Serge Roy
    President and CEO
    (819) 825-8678 or (819) 856-8435
    or
    Metanor Resources Inc.
    Ghislain Morin
    Director
    (819) 354-9439
    or
    Metanor Resources Inc.
    Andre Tremblay
    Geologist
    (819) 825-8628
    ressources.metanor@cablevision.qc.ca
    www.metanor.ca
    The TSX Venture Exchange does not accept any responsability for the
    adequacy or the accuracy of this release.