Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

October 31, 2005 12:02 ET

Nuinsco Announces $2.5 Million Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2005) - Nuinsco Resources Ltd. (the "Company" or "Nuinsco") (TSX:NWI) announced today that it intends to raise up to $2,500,000 in a private placement offering of "flow-through units" and "common share units" (the "Offering"). The maximum gross proceeds from the offering of the flow-through units will be $1,500,000. M Partners Inc. (the "Agent") has been engaged to act as agent to sell the securities offered under the Offering on a best efforts basis.

Each such flow-through unit will be offered at a price of $0.22 and will be comprised of one "flow-through" common share of the Company and one-half of one warrant of the Company, with each whole warrant (a "Warrant") entitling the holder to purchase one common share of the Company at a price of $0.30 for a period of two years following the closing of the Offering.

Each such common share unit will be offered at a price of $0.18 and will be comprised of one common share of the Company and one Warrant.

The Agent has the right to increase the offering of common share units by up to 4% of the Offering.

Nuinsco will pay the Agent a cash commission equal to 8 % of the aggregate gross proceeds of the Offering and will grant to the Agent non-transferable warrants to purchase such number of common shares of the Company which is equal to 8% of the aggregate number of flow-through units and common share units sold under the Offering, exercisable for a period of two years following the closing of the Offering at a price of $0.18 per common share.

Proceeds from the sale of the flow- through units will be used for exploration work, primarily on the Company's Diabase uranium exploration project in Saskatchewan and the Minago nickel deposit located in Manitoba's Thompson Nickel Belt. Proceeds from the sale of the common share units will be used for acquisitions, working capital and to finance exploration on the Berta project in Turkey. The Offering is subject to Toronto Stock Exchange and board approvals.

Nuinsco is an exploration and development company with a uranium property in Saskatchewan, nickel projects in Manitoba and Quebec, and base metal projects in Ontario and Turkey. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI. U.S.S.E.C. exemption: 12g 3-2(b)#82-1846. The website address is www.nuinsco.ca

FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding future plans and objectives of are forward-looking statements that involve various risks and uncertainties.

Contact Information

  • Nuinsco Resources
    Warren Holmes
    CEO
    (416) 626-0470
    or
    Nuinsco Resources
    Brian Robertson
    President
    (416) 626-0470
    admin@nuinsco.ca
    or
    The Windward Agency
    Kelly Boatright
    (704) 588-8600 or Toll Free: (866) 583-6300
    kboatright@windwardagency.com