June 21, 2005 11:57 ET

Second Closing of the Second Private Placement and Bachelor Lake Property

VAL-D'OR, QUEBEC--(CCNMatthews - June 21, 2005) - Metanor Resources Inc. ("Metanor") (TSX Venture:MTO) has completed a second closing of its second private placement, which placement was originally announced on March 11, 2005. In the course of this second closing, Metanor accepted subscriptions for 5,119,168 units at the price of $0.60 per unit representing a total money amount of $3,071,500.80. Each unit is comprised of one common share and one share purchase warrant. Each share purchase warrant entitles its holder to subscribe to one common share of Metanor at the price of $0.85 per share at any time until December 19, 2006.

European investors subscribed 1,470,000 units ($882,000) and Canadian investors subscribed 3,649,168 units ($2,189,500.80), including European and Canadian investment funds.

Subsequent to this second closing, the balance of the sale price due GeoNova Explorations Inc. pursuant to the deed of purchase of the Bachelor Lake Property, has been completely paid from the net proceeds of the private placement.

Hythe Securities Limited of London has received remuneration equal to 8% of the gross proceeds of the units subscribed by European investors and as additional remuneration, Hythe Securities Limited of London shall receive 147,000 broker's warrants reflecting 10% of the number of units subscribed by European investors. Each broker's warrant shall entitle its holder to subscribe one common share of Metanor at a price of $0.75 per share within a period of 18 months following the closing date.

Pursuant to this private placement, 5,119,168 common shares, 5,119,168 share purchase warrants and 147,000 broker's warrants have been issued. The current number of Metanor common shares issued and outstanding is 17,018,418 the total number of share purchase warrants is 6,802,467 the total number of broker's 203,500.

The securities issued pursuant to this private placement are subject to certain resale restrictions pursuant to the applicable security legislations requiring among others that said securities cannot be traded within a period of four months following the closing date, being October 20, 2005.

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

Contact Information

  • Metanor Resources Inc.
    Serge Roy
    President and CEO
    (819) 825-8678 or (819) 856-8435
    Metanor Resources Inc.
    Ghislain Morin
    Vice-President Corporate Development
    (819) 825-8678 or (819) 354-9439
    (819) 825-8224 (FAX)