Teras Resources Inc.

Teras Resources Inc.

November 20, 2006 18:54 ET

Teras Announces Completion of $417,550 Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 20, 2006) - Teras Resources Inc. (TSX VENTURE:TRA) ("Teras"): Further to Press Release issued October 19, 2006, Peter Leger, President and Chief Executive Officer of Teras announces that the company completed the closing of the first tranche of a non-brokered private placement of 2,530,607 units at a price of $0.165 per unit for gross proceeds of $417,530. Teras expects to close the second tranche of the private placement in the next 2 weeks. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable into one common share at $0.35 per share for a period of two years from closing. All of the securities issued in connection with this private placement are subject to a four-month hold period (until March 21, 2007). Proceeds of the private placement will be used to carry out property assessment work and an exploration program with the goal of initiating the exploration program in the spring of 2007.

After giving effect to the private placement, Teras has 19,434,271 common shares issued and outstanding. In connection with the issuance of certain units in the private placement, an aggregate finder's fee of $6,150 was paid to Gordon Beach, David Anderson and Shafin Hirji. Directors of Teras, or companies controlled by them, subscribed for a total of 40,000 units. The completion of the private placement is subject to final TSX Venture approval. Teras has determined that exemptions from the various requirements of TSX Venture Policy 5.0 and OSC Rule 61-501 are available for the issuance of the units.

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

Stock Symbol TRA on the TSX-Venture Exchange

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