Yorbeau Resources Inc.
TSX : YRB.A

Yorbeau Resources Inc.

October 27, 2005 12:53 ET

Yorbeau Resources Inc.: Announcement

MONTREAL, QUEBEC--(CCNMatthews - Oct. 27, 2005) - Yorbeau Resources Inc. ("Yorbeau" or the "Company") (TSX:YRB.A) is pleased to announce that it will be offering rights to holders of its Class A common shares of record at the close of business on November 7, 2005 (the "Record Date"). The offering will be made in British Columbia, Alberta, Ontario and Quebec and in such other jurisdictions where the Company is eligible to make such offer. Under the offering, each eligible shareholder will receive one right evidenced by a fully transferable certificate for each common share held as of the Record Date. Twenty rights and $0.75 will entitle the holder to subscribe for one unit of the Company (a "Unit") at any time up to 4:00 p.m. on December 1, 2005. Each Unit is comprised of two flow-through common shares and one common share of the Company.

A fully subscribed rights offering would raise gross proceeds of approximately $3,370,000. The proceeds of the offering allocated to the flow-through common shares comprised in the Units will be used by the Company to fund an exploration program on its Rouyn property budgeted at $2,000,000. The balance of the proceeds will be used for general working capital needs. The work carried out under the exploration program will qualify as Canadian exploration expense and will be renounced in favour of the Unit subscribers effective on or before December 31, 2005.

The proposed exploration program, which will consist of a total of 20,000 m of surface diamond drilling, is intended to test, at depth, two newly identified gold-bearing horizons on the Cinderella block of the Rouyn property, called horizons nos. 3 and 4. As more fully described in the Company's press release dated August 18, 2005, Yorbeau was able to correlate horizon no. 4 with previously identified gold mineralization in zones on the Astoria block to the east, which suggests that the gold grade in the horizon increases at depth. The Company intends to commence the proposed exploration program upon closing of the rights offering.

Contact Information

  • YORBEAU RESOURCES INC.
    G. Bodnar Jr.,
    President
    (514) 384-2202
    (514) 384-6399 (FAX)
    or
    YORBEAU RESOURCES INC.
    David Crevier,
    Chairman
    (514) 284-3663
    (514) 284-1961 (FAX)