Serengeti Resources Inc.

Serengeti Resources Inc.

June 08, 2007 12:13 ET

Serengeti Announces Completion of $20 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2007) -


Serengeti Resources Inc. (the "Company") (TSX VENTURE:SIR) is pleased to announce that it has closed its previously announced bought-deal private placement with a syndicate of underwriters led by Canaccord Capital Corporation and including Pacific International Securities Inc. and Dundee Securities Corporation (the "Underwriters") for gross proceeds of $19,000,200. The Company also raised additional gross proceeds of $999,000 by way of a non-brokered private placement.

The Company issued 3,000,000 units (the "Units") at a price of $3.00 per Unit and 1,600,000 flow-through shares ("Flow-Through Shares") at a price of $3.75 per Flow-Through Share or gross proceeds of $15,000,000. A Unit will consist of one common share and one-half of one transferable common share purchase warrant (a "Warrant"). Each whole warrant will entitle the holder to subscribe for one additional common share (a "Warrant Share") at a price of $4.00 for a period of one year from the date of closing. The Underwriters have exercised an over allotment option to purchase 1,333,400 Units to raise additional gross proceeds of $4,000,200. The Underwriters received a commission of 6% of the gross proceeds raised payable in combination of cash and 354,429 Units. In addition, the Underwriters received warrants entitling the Underwriters to acquire 356,004 common shares of the Company at a price of $3.50 for a period of one year from the date of closing.

The Company also closed a non-brokered private placement of 333,000 Units having the same terms as the above for gross proceeds of $999,000. A finder's fee equal to 6% of the proceeds raised in the non-brokered portion was paid by the issuance of 19,980 units.

The funds raised from the issuance of the Flow-Through Shares shall be used for exploration expenditures which will constitute Canadian Exploration Expenditures on the Company's properties located in British Columbia. Funds raised from the issuance of Units will be for general working capital.

All securities issued pursuant to the brokered and non-brokered private placement will be subject to a hold period expiring on October 9, 2007.

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. Serengeti is focused on the discovery and development of copper-gold and molybdenum deposits in British Columbia, especially in the highly prospective Quesnel Trough where it owns numerous claim blocks totaling in excess of 100,000 hectares. Additional information can be found on Serengeti's website at

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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