Newfoundland Goldbar Resources Inc.

October 18, 2006 14:13 ET

Newfoundland Goldbar Resources Inc.: Private Placement to Raise $1,000,000

ST. JOHN'S, NEWFOUNLAND AND LABRADOR--(CCNMatthews - Oct. 19, 2006) - Newfoundland Goldbar Resources Inc.(NEX BOARD:NGB.H) (the "Corporation")announces that further to its press release dated September 12, 2006, it will not be proceeding with the non-brokered private placement as announced. The Corporation now proposes to issue by way of a non-brokered private placement, subject to regulatory approval, up to 16,666,666 units ("Units") at a price of $0.06 per Unit, for gross proceeds of up to $1,000,000. Each Unit consists of one Common Share of the Corporation and one Common Share purchase warrant ("Warrant"), with each Warrant entitling the holder thereof to acquire one Common Share of the Corporation at an exercise price of $0.10 per share for a period of 12 months from the closing date.

A finder's fee will be paid (i) by cash equal to 7% of the gross proceeds raised on the private placement; and (ii) by options to purchase a number of Common Shares equal to 7% of the Common Shares sold pursuant to the private placement, which options will have an exercise price of $0.06 per share and will expire 12 months from the closing date.

Certain insiders of the Corporation will sell Common Shares of the Corporation and the proceeds of such sale, after deduction of costs, will be used by the selling shareholders to purchase Units under the private placement.

The proceeds of the private placement will be used to satisfy debts, to pursue further business opportunities, and for general working capital.

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

Contact Information

  • Newfoundland Goldbar Resources Inc.
    Harold L. Wareham
    President and Chief Executive Officer
    709-576-2236 (FAX)