UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

April 08, 2006 11:38 ET

UC Resources Completes $1,650,799.80 Non Brokered Private Placement For Acquisitions and Exploration in Mexico

TORREON, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 8, 2006) - UC Resources Ltd. (TSX VENTURE:UC) (the "Company") announces today the closing of a non-brokered private placement, which in total resulted in gross proceeds of $1,650,799.80.

The placement comprised units at a price of $0.26 per unit, each unit consisting of one common share in the capital of the Company and one common share purchase warrant, with each warrant entitling its holder to acquire one common share at a price of $0.34 at any time up to September 30, 2007. All securities are subject to a hold period expiring August 1, 2006.

A commission of 8% in cash was paid in respect to a portion of the placement and Agent's Warrants totaling 247,539 were issued on the same terms as the placement warrants.

The net proceeds of this offering will be used for acquisitions, working capital and to fund the Company's ongoing exploration program at it's 100% interest in the 192 sq. km Copalquin property located in northwest region of Durango State, Mexico.

Phase 2 of exploration is underway at the Copalquin Property. The 2006 program has encompassed, new staking, detailed mapping, satellite imagery, surface sampling, trenching, drilling, and verification of past explorers high grade silver and gold results. In addition to exploring at Copalquin, management is using its extensive network of contacts in Mexico to identify projects that have potential for low capital cost production. Several new projects are at advanced evaluation stage and details will be announced accordingly.

On behalf of the Board of Directors,

Richard J. Hamelin, President/Director

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

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

Contact Information

  • Vancouver, B.C. Canada: UC Resources Ltd.
    William Elston
    VP Corporate Development, Officer
    Toll Free: 1 (800) 366-8566 (Canada & USA)
    www.ucresources.net