X-Terra Resources Corporation
TSX VENTURE : XT

X-Terra Resources Corporation

October 01, 2007 17:29 ET

X-Terra Arranges a $400,000 Private Placement With Mineralfields

VANCOUVER, BRITISH COLUMBIA—-(Marketwire – Oct. 1, 2007) - X-Terra Resources Corporation (TSX VENTURE:XT) is pleased to announce that the company has arranged a private placement, subject to regulatory approval, with the MineralFields Group for gross proceeds of $400 000. In total, the corporation will issue 426,666 Flow-Through units at a price of $0.75 cents per unit, with each unit consisting of one flow-through common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the corporation for a period of 24 months at an exercise price of $1.00 per share. The corporation will also issue 133,333 hard-dollar units at a price of $0.60 cents per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the corporation for a period of 24 months at an exercise price of $0.75 cents per share.

Limited Market Dealer Inc. will receive a cash finder's fee of 5 percent of the gross proceeds and non-transferable finder's fee options in the form of units equal to 5 percent of the number of units issued by the corporation for a total of 27,999 units with an exercise price of $0.60 cents. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the corporation for a period of 24 months at an exercise price of $0.75 cents per share.

All securities issued pursuant to the offering will be subject to a hold period expiring 4 months from the closing.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged superflow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at its website. First Canadian Securities, a division of Limited Market Dealer, is active in leading resource financings (both flow-through and hard-dollar financings) on competitive, effective and service-friendly terms, with investors both within and outside of MineralFields Group.

About X-Terra Resources:

X-Terra is a mineral resources company focused on acquiring and exploring gold and uranium properties in Canada. X-Terra has active gold/uranium exploration projects in province of Quebec, Canada.

Forward-looking Statements

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the ability of X-Terra to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements, including risks disclosed in filings with the Canadian securities regulators made by X-Terra. Accordingly, readers should not place undue reliance on forward-looking statements.

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

Contact Information

  • X-Terra Resources Corporation
    Laurent Halle
    President and CEO
    (819) 762-0609
    (819) 762-0097 (FAX)
    Email: info@terraxmanagement.com