Yorbeau Resources Inc.

Yorbeau Resources Inc.

May 03, 2007 15:30 ET

Yorbeau Announces a $5,000,000 Private Placement

MONTREAL, QUEBEC--(CCNMatthews - May 3, 2007) - Yorbeau Resources Inc. (the "Company") (TSX:YRB.A) is pleased to announce it has entered into an agreement with a syndicate of Agents led by Laurentian Bank Securities and including Northern Securities Inc. (collectively, the "Agents"), to raise up to $5,000,000 by way of a marketed private placement. The Company is seeking to complete two private placements: (i) one placement of Units, each Unit consisting of one Common Share and one half of one Common Share Purchase Warrant, for proceeds of up to $2.0 million (the "Unit Placement") and (ii) one placement of Flow-Through Common Shares (the "Flow-Through Shares") for proceeds of up to $3.0 million.

The Units will be priced at $0.32 each. Each full Purchase Warrant granted pursuant to the Unit Placement will entitle the holder thereof to purchase one Common Share at a price of $0.45 for a period of 18 months after the closing of the private placement. The Flow-Through Shares will be priced at $0.40 each.

The Agents will receive a cash fee equal to 7.5% of the gross proceeds raised from the placement, as well as broker's warrants, exercisable for a period of 18 months, to purchase that number of Units which is equal to 10% of the number of Units and Flow-Through Shares sold.

Completion of the private placement is subject to certain conditions, including satisfactory due diligence by the Agents and receipt of all necessary regulatory approvals.

The proceeds of the flow-through portion of the financing will be used to fund the Company's 2007-2008 exploration program, while the non flow-through portion of the financing will be used for general corporate purposes.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Yorbeau Resources Inc. is a mining company involved in gold exploration in Quebec, Canada. Its properties are located in a northwestern area of the province associated with a large number of significant deposits in the Cadillac-Larder Lake region on the famed Abitibi Greenstone Belt. Some 200 million ounces of gold have thus far been mined in the area.

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Yorbeau Resources Inc.
    G. Bodnar jr
    Yorbeau Resources Inc.
    Louis Bernier
    Vice President Exploration
    Sun International Communications
    Nicole Blanchard
    Investor Relations