Simberi Mining Corporation

Simberi Mining Corporation

October 25, 2006 14:34 ET

Simberi Mining Corporation Completes $2.6 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 25, 2006) - Simberi Mining Corporation ("Simberi") (TSX VENTURE:SAU) is pleased to announce that it has raised gross proceeds of $2,600,000 through the sale of 26,000,000 units. Each unit was sold to subscribers at price of $0.10 per unit. In addition to the $2,600,000, Simberi intends to close shortly on additional $175,000 for an expected aggregate gross raise of $2,775,000.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of $0.20 for a period of two years following the closing date. All securities issued pursuant to the private placement are subject to a four month hold period following the closing date.

Following expiry of the hold period, Simberi shall have the right to call the warrants by giving 30 days notice at any time if the average closing sales price of the company's common shares exceeds $0.50 per share for 20 trading days within any 30 trading day period. The call price of the warrants is $0.01 per whole warrant.

Simberi will pay a finder's fee in respect of the placement in an amount equal to 10% of the gross proceeds raised.

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

  • Simberi Mining Corporation
    Mike Newbury
    President and CEO
    (416) 603-7200
    (416) 603-9200 (FAX)