Tenajon Resources Corp.
TSX VENTURE : TJS

Tenajon Resources Corp.

July 17, 2007 07:54 ET

Tenajon Announces $4.56 Million Private Placement

Funds to Advance Molybdenum Exploration Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) -

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

Tenajon Resources Corp. (TSX VENTURE:TJS) (the "Company") is pleased to announce that it has entered into a letter of engagement with Dundee Securities Corporation and Canaccord Capital Corporation (the "Underwriters") under which the Underwriters have agreed to purchase on a bought deal private placement basis 3,600,000 flow-through common shares (the "Flow-Through Shares") of Tenajon at a price of $0.85 per Flow-Through Share and 2,000,000 units (the "Units") at a price of $0.75 per Unit for total gross proceeds to Tenajon of $4,560,000. Each Unit consists of one common share of Tenajon plus one half of one transferable common share purchase warrant with each whole purchase warrant exercisable into a common share at a price of $1.00 for a period of 24 months from closing. Under the agreement, the Underwriters have an over-allotment option to purchase an additional 2,000,000 Units for $1.5 million in gross proceeds.

In connection with the Offering, the Underwriters will receive a cash commission equal to 7% of the gross proceeds raised under the Offering plus broker warrants (the "Broker Warrants") equal to 7% of the number of Flow-Through Shares and Units sold under the offering. The Broker Warrants will be exercisable into common shares at a price of $0.75 per Broker Warrant for a period of 24 months from closing.

Closing of the offering is scheduled to occur on or about August 14, 2007. All securities issued will be subject to a four month hold period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

Net proceeds from the financing will be used for general corporate purposes and to further the Company's molybdenum exploration programs on its Ajax, Moly Brook, and Burn projects.

Tenajon Resources Corp. (the "Company") is a Canadian exploration company with a principle focus of exploring and developing molybdenum deposits in Canada. Tenajon also has two advanced exploration gold projects in its property portfolio, the Kansas Claim and Summit Lake. Joint venture partners Pinnacle Mines Ltd. and Mountain Boy Minerals Ltd. are successfully advancing Tenajon's Kansas Claim.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements.

On Behalf of the Board of Directors

TENAJON RESOURCES CORP.

D. Bruce McLeod, President

This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See the Company's filings for a more detailed discussion of factors that may impact expected results.

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

Contact Information

  • Tenajon Resources Corp.
    D. Bruce McLeod
    President
    (604) 687-7545 or Toll Free: 1-888-338-2200
    (604) 689-5041 (FAX)
    Email: info@northair.com
    Website: www.tenajon.com