Teras Resources Inc.

Teras Resources Inc.

May 11, 2009 12:51 ET

Teras Completes Non-Brokered Unit Private Placement and Issues Options

CALGARY, ALBERTA--(Marketwire - May 11, 2009) - Teras Resources Inc. ("Teras") (TSX VENTURE:TRA): Further to a press release dated February 26, 2009, Teras is pleased to announce that it has completed the closing of the first tranche of a non-brokered private placement of 7,100,000 units ("Units") at a price of $0.05 per Unit for gross proceeds of $355,000. Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one common share for two years from the date of issuance at a price of $0.15 per share until May 8, 2011. All securities issued in connection with the closing of the private placement are subject to a four-month hold period (until September 9, 2009). Proceeds of the private placement will be used to carry out exploration and development on Teras' current properties, for general working capital and new business development. After giving effect to the private placement, Teras has 32,785,856 common shares issued and outstanding. Finder's fees totaling $27,500, and 270,000 finder's warrants, were paid to finders for their participation in this tranche of the private placement. Each finder's warrant is exercisable into one common share of Teras for a period of one year at an exercise price of $0.05.

The completion of the private placement is subject to final TSX Venture Exchange approval. Two directors of Teras participated in the private placement purchasing a total of 310,000 Units and Teras has determined that there are exemptions available from the various requirements of TSX Venture Policy 5.9 and Multilateral Instrument 61-101 for the issuance of these Units, and the issuance of the options described below (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than $2,500,000). No new insiders were created, nor has any change of control occurred, as a result of this private placement.

In addition, Teras granted stock options to purchase a total of 850,000 common shares of Teras to directors and officers of Teras at an exercise price of $0.10 per share with an expiry date of 5 years from the date of issuance.

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 or 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)