Teras Resources Inc.

Teras Resources Inc.

July 30, 2009 16:29 ET

Teras Announces the Issuance of Convertible Unsecured Debentures

CALGARY, ALBERTA--(Marketwire - July 30, 2009) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Peter Leger, President and Chief Executive Officer of Teras is pleased to announce the completion of the non-brokered private placement of $250,000 of convertible unsecured subordinated debentures (the "Debentures"). The Debentures have a two year term and bear an annual interest rate of 10% payable semi-annually, in arrears. The Debentures are 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 are 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 has the option to convert the Debenture. The Debentures are subject to a four-month hold period (until December 1, 2009). Proceeds of this financing will be used for general working capital and potential future acquisitions.

The completion of the private placement is subject to final TSX Venture Exchange approval. No new insiders were created, nor has any change of control occurred, as a result of this private placement.

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)