Private Placement Closed
May 28, 2004
The Company is pleased to announce that is has closed a non-brokered private placement involving the issuance of 10,000,000 units (the "Units") at a price of $0.05 per Unit for gross proceeds of $500,000. Each Unit is comprised of one common share and one common share purchase warrant, each warrant entitling the holder to purchase one additional common share ("Warrant Share") of the Company for a period of two years from closing at a price of $0.10 per share. The Shares and Warrant Shares are subject to a hold period expiring on September 19, 2004.
Finder's fees were paid in connection with the private placement comprising of an aggregate of 789,000 warrants (exercisable at a price of $0.10 per share for a period of one year from closing) and $43,400 cash.
The proceeds of the private placement will be used for working capital purposes and for the Company's property commitments.
The Company also announces that it Mike Magrum has resigned as a director of the Company.
ON BEHALF OF THE BOARD
(sgd.) "David Baker", Director