Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

June 12, 2007 16:51 ET

Shear Minerals Closes $6 Million Brokered Private Placement

EDMONTON, ALBERTA--(Marketwire - June 12, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Shear Minerals Ltd. ("Shear") (TSX VENTURE: SRM) today announced that it has closed a brokered private placement through a syndicate led by Integral Wealth Securities Limited and including Wellington West Capital Inc. and Blackmont Capital Inc. (collectively, the "Agents") of 4,545,500 flow-through common shares of Shear ("FT Shares") at a price of $0.88 per FT Share and 2,666,500 units ("Units") at a price of $0.75 per Unit for gross proceeds of $5,999,915 ($999,915 from the exercise of an over-allotment option to sell an additional 1,136,268 FT Shares). Each Unit consisted of one common share of Shear ("Common Share") and one-half of a non-transferable share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share at a price of $0.95 at any time within 18 months of issuance. Insiders of Shear purchased an aggregate of 85,000 FT Shares.

The Agents together with other selling group members received an aggregate cash commission equal to 7% of the gross proceeds from the sale of the FT Shares and Units, except in respect of $385,480, on which the commission was 3.5% and non-transferable agents' compensation warrants ("Agents' Warrants") entitling the Agents and selling group members to acquire an aggregate Common Shares equal to 7% of the Units and FT Shares sold at a price of $0.75 per Common Share at anytime within 18 months following issuance.

The FT Shares and Units were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable jurisdictions. The proceeds from the sale of FT Shares will be used to incur expenditures which qualify as Canadian Exploration Expenses and will be spent primarily on Shear's Churchill Diamond Project in Nunavut. The FT Shares, Units, Agents' Warrants and Common Shares issuable upon exercise of the Warrants and Agents' Warrants are all subject to a 4 month restricted period expiring on October 13, 2007.

Shear Minerals Ltd. is a Canadian-based exploration company focused on diamond exploration in the Canadian North where it explores in established diamond districts and has discovered new ones. Shear currently has a portfolio of ten diamond projects, seven of which are drill-ready. The Company has advanced its 51.89%-owned Churchill Diamond property in Nunavut from a conceptual grassroots project to a new kimberlite district hosting over 50 kimberlites.

On behalf of the Board

Pamela Strand, P. Geol., President

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

Contact Information

  • Shear Minerals Ltd.
    Pamela Strand
    President
    (780) 435-0045 or Toll Free: 1-866-298-9695
    Website: www.shearminerals.com