Olivut Resources Ltd.
TSX VENTURE : OLV

Olivut Resources Ltd.

April 24, 2007 13:20 ET

Olivut Resources Ltd. Announces Private Placement

TORONTO, ONTARIO--(CCNMatthews - April 24, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Leni Keough, President and CEO of Olivut Resources Ltd. ("Olivut" or the "Company") (TSX VENTURE:OLV) announces the arrangement of a best efforts private placement for the sale of 3,715,000 units at C$1.75 per unit (a "Unit) for gross proceeds of C$6.5 million. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of the Company at an exercise price of C$2.00 per common share for a period of 24 months from the closing of the offering. Closing is expected to be on or about May 10, 2007.

Genuity Capital Markets, acting as lead agent and sole bookrunner, and a syndicate of agents including Canaccord Capital Corporation (the "Agents") will receive cash commission of 7.0% of the gross proceeds raised in this private placement and compensation warrants (the "Compensation Warrants") entitling the Agents to purchase such number of common shares equal to 7.0% of the aggregate number of Units sold pursuant to the private placement. Each Compensation Warrant will entitle the Agents to purchase one common share of the Company at a price of $2.00 per common share for a period of 12 months following the closing.

The proceeds from the placement will be used to continue the exploration program on the HOAM project and for general corporate purposes.

Completion of the private placement is subject to certain conditions including, but not limited to all necessary approvals. The private placement is being made in the provinces of British Columbia, Alberta and Ontario. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to a U.S. Person (as defined in Regulation S of the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Olivut is a diamond exploration company with a 100% mineral interest in over 2,000,000 acres in the prospective HOAM Project in Canada's Northwest Territories. Olivut has spent over $7 million assessing the diamond potential of the property, including extensive geophysics and geochemistry.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Leni Keough

President and Chief Executive Officer

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

Contact Information

  • Olivut Resources Ltd.
    Leni Keough
    President and Chief Executive Officer
    (780) 866-2221