Teras Resources Inc.

Teras Resources Inc.

October 19, 2006 17:16 ET

Teras Announces $660,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 19, 2006) - Teras Resources Inc. ("Teras") (TSX VENTURE:TRA): Peter Leger, President and Chief Executive Officer of Teras announces that the company intends to complete a non-brokered private placement of up to 4,000,000 units at a price of $0.165 per unit for gross proceeds of up to $660,000. Each unit will consist of one common share and one common share purchase warrant. Each whole warrant is exercisable into a common share at $0.35 per share for a period of two years from closing. A finder's fee of up to 8% of the gross proceeds of the private placement may be paid on all or any portion of this private placement. It is not anticipated that any new insiders will be created, nor that any change of control will occur as a result of the private placement.

The company's main assets are the Golden Jubilee Property, a gold vein deposit which consists of a 227 acre claim block located near Philipsburg, Granite County, in south eastern Montana, and the Watseka Mill Property which is located in Rochester Basin, Montana. The Watseka Mill includes a mill site and patented mining claims which contain exploited and untested gold vein deposits. Teras is raising funds to carry out property assessment work and plan an exploration program with the goal of initiating an exploration program in the spring of 2007.

Teras' management is also assessing options to acquire several gold and base-metal targets in other US locations.

The company's vision is to acquire properties with established technical merit that are at or near the pre-feasibility stage of development. Teras' exploration work will be focused on detailed diamond drilling programs and proving resources with a NI 43-101 resources report.

Teras will continue to update shareholders on the progress of future corporate news, financings, and project developments.

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

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

Contact Information

  • Teras Resources Inc.
    Peter Leger
    (403) 852-0644