Teras Resources Inc.

Teras Resources Inc.

July 20, 2009 18:10 ET

Teras Announces the Issuance of Convertible Unsecured Debentures

CALGARY, ALBERTA--(Marketwire - July 20, 2009) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Peter Leger, President and Chief Executive Officer of Teras is pleased to announce that it intends to raise a maximum of $250,000 by way of issuance of convertible unsecured debentures (the "Debentures"). The Debentures will have a two year term and bear an annual interest rate of 10% payable semi-annually, in arrears. The Debentures will be convertible at the holder's option into common shares of Teras at any time prior to maturity or redemption of the Debentures at a conversion price of $0.10 per share. Holders converting their Debentures will receive accrued and unpaid interest thereon in cash to the date of conversion. The Debentures will be redeemable at the option of Teras at any time during the term of the Debentures upon 30 days prior written notice during which period the Debenture holder shall have the option to convert the Debenture. Proceeds of this financing will be used for general working capital and potential future acquisitions. It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a result of this Debenture financing. Completion of the financing is subject to regulatory approval including approval of the TSX Venture Exchange.

About Teras

Teras' vision is to acquire and advance properties with established technical merit. The Company's exploration work will be focused on detailed diamond drilling programs with the goal of proving resources with an NI 43-101 compliant resource report.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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 of accuracy of this news release.

Contact Information

  • Teras Resources Inc.
    Peter Leger
    (403) 852-0644
    Email: pleger@teras.ca
    Website: www.teras.ca
    Stirling Investor Relations
    Sam Grier
    (403) 229-2115
    (403) 802-0766 (FAX)