Takara Resources Inc.
TSX VENTURE : TKK

Takara Resources Inc.

January 14, 2011 16:11 ET

Takara Announces Closing of $4.35M Private Placement Offering

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Takara Resources Inc. (TSX VENTURE:TKK) ("Takara" or the "Company") is pleased to announce the closing of a private placement offering for aggregate gross proceeds of $4,353,167. The first tranche of this financing closed on a non-brokered basis on December 31, 2010 for gross proceeds of $461,250 (see Press Release January 4, 2010). The second and final tranche of this financing closed today, for gross proceeds of $3,891,917. A syndicate led by Acumen Capital Finance Partners Limited ("Acumen"), including Jennings Capital Inc., closed the brokered portion of this offering for proceeds totalling $3,669,417, and the Company simultaneously closed the second tranche of its non-brokered portion for proceeds totalling $222,500.

DETAILS OF THE BROKERED PLACEMENT, LED BY ACUMEN CAPITAL FINANCE PARTNERS LIMITED AND INCLUDING JENNINGS CAPITAL INC.

The Company issued 14,677,668 Units at a price of $0.25 per Unit. Each Unit consisted of one Common Share of Takara and one half of one non-transferable share purchase warrant. Each full warrant entitles the holder to acquire an additional Common Share at a price of $0.35 at any time until July 14, 2012, subject to an accelerated expiry described below.

The Company paid an agency fee to Acumen of $238,512.11, in addition to the issuance of a number of Broker Warrants equal to 6.5% of the number of Units sold by Acumen, totaling 954,048 Broker Warrants. Each Broker Warrant entitles the holder to acquire one Unit of the Company at a price of $0.25 until July 14, 2012, the Units having the same terms as the Units placed under the offering.

DETAILS OF THE NON-BROKERED PLACEMENT, SECOND (FINAL) TRANCHE

The Company issued 890,000 Units at a price of $0.25 per Unit. Each Unit consisted of one Common Share of Takara and one half of one non-transferable share purchase Warrant. Each full Warrant entitles the holder to acquire an additional Common Share at a price of $0.35 at any time until July 14, 2012, subject to an accelerated expiry described below.

In connection with this tranche, the Company paid finders' fees to brokers or other third parties (the "Finders") equal to 4% of the gross proceeds raised, totalling $2,900.

Contrary to Takara's news release dated January 4, 2011, the amount of Finder's fees paid to eligible Finders pertaining to closing of the first tranche totaled $11,600, rather than $13,500 as previously announced.

If on any 20 consecutive trading days occurring after May 15, 2011 the closing sales price of Takara's Common Shares (or the closing bid, if no sales are reported on a trading day) as quoted on the TSX Venture Exchange is greater than $0.45, Takara may provide notice in writing to the holders of the Warrants that the expiry date of the Warrants will be accelerated to a date no earlier than the 30th day after the date on which it gives notice to the Warrant holders.

Concurrent with closing, Takara expects to make submission to the TSX Venture Exchange for final acceptance of the private placement.

The net proceeds from the sale of the Units will be used by Takara for working capital purposes and to undertake the ongoing work program on its Guyana Gold Projects.

ABOUT TAKARA

Takara Resources Inc. (TSX VENTURE:TKK) is a Canadian based gold company focused on the exploration and development of its Guyana gold assets held within a wholly-owned subsidiary, StrataGold Guyana Inc., including two gold projects within the Guyana Shield, namely: (i) the 100% owned Tassawini Gold Project; and (ii) a 29.90% interest in the Arakaka Joint Venture.

Statement Regarding Forward Looking Information

This news release of Takara contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Takara's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding Takara's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which Takara has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Takara's expectations. Except as required by law, Takara undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Takara Resources Inc.
    Jennifer Boyle, B.A., LL.B.
    President & Chief Executive Officer
    (647) 430-0966 (work) or (416) 904-2714 (cell)