Owner
Post by Franko10 ™ on May 9, 2005 7:55:00 GMT -5
Kensington Resources Closes $31 Million Equity Financing
08:26 EDT Monday, May 09, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 9, 2005) - NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS
Kensington Resources Ltd. (the "Company") (TSX VENTURE:KRT) announces that it has closed the private placement of flow-through shares and units previously announced on March 30, 2005 and April 22, 2005, to raise aggregate gross proceeds of $31,000,000. The securities were sold on a best efforts agency basis by a syndicate of agents led by Loewen, Ondaatje, McCutcheon Limited, including Westwind Partners Inc., National Bank Financial Inc., Research Capital Corporation and Wellington West Capital Markets Inc. (collectively, the "Agents").
A total of 4,255,400 flow-through common shares were issued at a price of CDN $2.35 per flow-through share and a total of 10,000,000 non-flow through units were issued at a price of CDN $2.10 per unit to accredited investors in Canada, the United States and overseas. Each non flow-through unit consists of one non flow-through common share and one half of one share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional non flow-through common share for a period of twelve months from closing at a price of CDN $2.50 per share. The Company has agreed to use its commercially reasonable efforts to list the warrants on the TSX Venture Exchange, such listing to be effective as of the date on which all applicable resale restrictions in respect of the warrants have expired.
The Agents received a commission of 5.5% of the gross proceeds of the offering. In addition, the Agents received warrants entitling the Agents to purchase for a period of twelve months from closing: (i) 255,324 non-flow through common shares at a price of CDN $2.10 per share; and (ii) 600,000 units on the same terms as the offering at a price of CDN $2.10 per unit. All of the securities are subject to a four-month hold period in Canada in accordance with applicable securities laws, expiring September 7, 2005.
The gross proceeds of the offering of the flow-through shares will be used for Canadian Exploration Expenses (as such terms are defined in the Income Tax Act (Canada)) on the Fort a la Corne Diamond Project in Saskatchewan. The proceeds of the offering of the units will be used for exploration programs on the Fort a la Corne Diamond Project and for general corporate purposes.
"The successful completion of this financing reflects the momentum that is building in the Fort a la Corne Diamond Project," says Robert A. McCallum, President and CEO Kensington Resources Ltd. "We have been actively building interest in the immense opportunity of diamonds in Saskatchewan and both the market and investors have responded with enthusiasm and support. We in turn, will continue to be responsible to shareholders and remain vigilant in the co-management of the project so as to drive the pace of this exploration phase as quickly as possible."
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Kensington Resources Ltd. is an exploration and mine development company currently focused on the high potential Fort a la Corne Diamond Project in Saskatchewan. The management team includes strong technical expertise and is committed to reaching a diamond producer status for the realization of shareholder value. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.245%), De Beers Canada Inc. (42.245%), Cameco Corporation (5.51%) and UEM Inc. (carried 10%). After fifteen years of exploration at Fort a la Corne, the joint venture partners have entered into an accelerated results-driven advanced exploration and evaluation phase targeted on reaching a pre-feasibility decision in 2008. The Fort a la Corne Diamond Project includes 63 identified kimberlite bodies within the largest diamondiferous kimberlite cluster in the world.
Robert A. McCallum, President & CEO
FORM 20-F FILE #0-24980
LISTED IN STANDARD & POOR'S
FOR FURTHER INFORMATION PLEASE CONTACT:
Kensington Resources Ltd.
Robert A. McCallum
President & CEO
1-800-514-7859 or (604) 682-0020
(604) 682-0021 (FAX)
rob-mccallum@kensington-resources.com
or
Kensington Resources Ltd.
Mel Gardner
Manager Investor Relations
1-800-710-6083
mel-gardner@kensington-resources.com
www.kensington-resources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release
08:26 EDT Monday, May 09, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 9, 2005) - NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS
Kensington Resources Ltd. (the "Company") (TSX VENTURE:KRT) announces that it has closed the private placement of flow-through shares and units previously announced on March 30, 2005 and April 22, 2005, to raise aggregate gross proceeds of $31,000,000. The securities were sold on a best efforts agency basis by a syndicate of agents led by Loewen, Ondaatje, McCutcheon Limited, including Westwind Partners Inc., National Bank Financial Inc., Research Capital Corporation and Wellington West Capital Markets Inc. (collectively, the "Agents").
A total of 4,255,400 flow-through common shares were issued at a price of CDN $2.35 per flow-through share and a total of 10,000,000 non-flow through units were issued at a price of CDN $2.10 per unit to accredited investors in Canada, the United States and overseas. Each non flow-through unit consists of one non flow-through common share and one half of one share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional non flow-through common share for a period of twelve months from closing at a price of CDN $2.50 per share. The Company has agreed to use its commercially reasonable efforts to list the warrants on the TSX Venture Exchange, such listing to be effective as of the date on which all applicable resale restrictions in respect of the warrants have expired.
The Agents received a commission of 5.5% of the gross proceeds of the offering. In addition, the Agents received warrants entitling the Agents to purchase for a period of twelve months from closing: (i) 255,324 non-flow through common shares at a price of CDN $2.10 per share; and (ii) 600,000 units on the same terms as the offering at a price of CDN $2.10 per unit. All of the securities are subject to a four-month hold period in Canada in accordance with applicable securities laws, expiring September 7, 2005.
The gross proceeds of the offering of the flow-through shares will be used for Canadian Exploration Expenses (as such terms are defined in the Income Tax Act (Canada)) on the Fort a la Corne Diamond Project in Saskatchewan. The proceeds of the offering of the units will be used for exploration programs on the Fort a la Corne Diamond Project and for general corporate purposes.
"The successful completion of this financing reflects the momentum that is building in the Fort a la Corne Diamond Project," says Robert A. McCallum, President and CEO Kensington Resources Ltd. "We have been actively building interest in the immense opportunity of diamonds in Saskatchewan and both the market and investors have responded with enthusiasm and support. We in turn, will continue to be responsible to shareholders and remain vigilant in the co-management of the project so as to drive the pace of this exploration phase as quickly as possible."
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Kensington Resources Ltd. is an exploration and mine development company currently focused on the high potential Fort a la Corne Diamond Project in Saskatchewan. The management team includes strong technical expertise and is committed to reaching a diamond producer status for the realization of shareholder value. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.245%), De Beers Canada Inc. (42.245%), Cameco Corporation (5.51%) and UEM Inc. (carried 10%). After fifteen years of exploration at Fort a la Corne, the joint venture partners have entered into an accelerated results-driven advanced exploration and evaluation phase targeted on reaching a pre-feasibility decision in 2008. The Fort a la Corne Diamond Project includes 63 identified kimberlite bodies within the largest diamondiferous kimberlite cluster in the world.
Robert A. McCallum, President & CEO
FORM 20-F FILE #0-24980
LISTED IN STANDARD & POOR'S
FOR FURTHER INFORMATION PLEASE CONTACT:
Kensington Resources Ltd.
Robert A. McCallum
President & CEO
1-800-514-7859 or (604) 682-0020
(604) 682-0021 (FAX)
rob-mccallum@kensington-resources.com
or
Kensington Resources Ltd.
Mel Gardner
Manager Investor Relations
1-800-710-6083
mel-gardner@kensington-resources.com
www.kensington-resources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release
