Newfoundland Goldbar Resources Inc.

November 17, 2006 16:23 ET

Newfoundland Goldbar Resources Inc.: Private Placement to Raise $1,300,000

ST. JOHN'S, NEWFOUNDLAND--(CCNMatthews - Nov. 17, 2006) - Newfoundland Goldbar Resources Inc.(NEX:NGB.H) (the "Corporation") announces that further to its press release dated October 18, 2006, now proposes to issue by way of a non-brokered private placement, subject to regulatory approval, up to 21,666,667 units ("Units") at a price of $0.06 per Unit, for gross proceeds of up to $1,300,000. 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 12% of the gross proceeds raised on the private placement; and (ii) by options to purchase a number of Common Shares equal to 10% 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. In addition, it is anticipated that a total of 975,000 Units will be purchased by certain insiders of the Corporation.

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)