Signet Minerals Inc.
TSX VENTURE : SGN

Signet Minerals Inc.

May 24, 2006 18:33 ET

Signet Minerals Inc.: Revised Private Placement

COMOX, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) -

Not for distribution to the United States news wire services or dissemination in the United states.

Signet Minerals Inc. (TSX VENTURE:SGN) ("Signet") announces that the terms of the private placement previously announced on May 8, 2006 has been revised to better reflect current market conditions. The Offering will now be comprised of up to 4,838,710 flow-through units (the "FT Units") at a subscription price of $0.62 per FT Unit representing aggregate gross proceeds of $3,000,000 and up to 1,000,000 units ("Regular Units") at a subscription price of $0.50 per Regular Unit for aggregate gross proceeds of $500,000 (the "Offering"). Each FT Unit will be comprised of one common share in the capital of the Corporation to be issued on a "flow-through" basis (a "Flow-Through Share") and one-half of one non-flow through common share purchase warrant (a "NFT Warrant"). Each Regular Unit will be comprised of one non-flow through common share in the capital of the Corporation (a "Regular Unit Share") and one-half of one whole non-flow through common share purchase warrant (a "Warrant"). Each whole NFT Warrant will entitle the holder thereof to acquire one non-flow through common share in the capital of the Corporation at a price of $0.85 per share for 18 months after the closing date of the Offering. Each whole Warrant will entitle the holder thereof to acquire one non-flow-through common share at a price of $0.75 per share for 18 months after the closing date of the Offering.

The Corporation has also revised the over-allotment option ("Over-Allotment Option") granted to the agents for the Offering, Toll Cross Securities Inc. and Pacific International Securities Inc. (the "Agents"). The Over-Allotment Option may be exercised at any time before 24 hours prior to the closing date of the Offering to increase the size of the Offering by an additional $1,500,000 made up of either FT Units, Regular Units or both.

The broker's options to be granted to the Agents on the closing of the Offering have also been revised. For their services in connection with the Offering, the Agents will be paid a cash commission equal to 8% of the aggregate gross proceeds of the Offering, as well as broker's options equal to 8% of the aggregate number of FT Units and Regular Units sold in the Offering (including the Over-Allotment Option). Each broker's option will allow the Agents to acquire one common share of Signet at a price of $0.50 per share for a period of 18 months from the closing date of the Offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Signet Minerals Inc.
    Kieran Downes
    (250) 729-0453
    Email:smi@shaw.ca
    or
    Signet Minerals Inc.
    Brian Cebryk
    (250) 890-0607
    Email:bdcebryk@shaw.ca