Simberi Gold Corporation
TSX VENTURE : SAU

Simberi Gold Corporation

November 15, 2005 08:30 ET

Simberi Gold Corporation Announces $2 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2005) - Simberi Gold Corporation ("Simberi") (TSX VENTURE:SAU) is pleased to announce that it intends to complete a private placement for gross proceeds of up to $2.0 million.

The company intends to issue up to 20 million units at a price of $0.10 per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share at an exercise price of $0.20 for a period of two years following the closing date.

The private placement is expected to close on or before December 9, 2005. The closing of the private placement is subject to, amongst other things, approval of the TSX Venture Exchange and completion of definitive documentation. All securities issued pursuant to the private placement will be subject to a four-month hold period following the closing date.

Simberi also announces that it is currently in negotiations to acquire the remaining outstanding equity shares of New Congo Resources Development Company Inc. ("New Congo") that it has not already agreed to purchase. As announced in an earlier press release, Simberi has entered into an agreement to purchase 66.7% of the outstanding common shares of New Congo. Simberi is currently negotiating to purchase the remaining 33.3%.

Simberi intends to use the proceeds of the private placement for working capital purposes and to commence active evaluation and exploration of New Congo's Kakanda copper-cobalt property in the African copper belt in the Democratic Republic of the Congo.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

Contact Information