PROPOSED PRIVATE PLACEMENT TO RAISE UP TO $3,000,000
December 23, 2004
Amanta Resources Ltd. (the “Company”) is pleased to announce that, subject to regulatory approvals, the Company will undertake a private placement of up to 8,571,429 Units at a price of $0.35 per Unit, for total proceeds of up to $3,000,000. Each Unit shall consist of one common share in the Company and one-half (½) of one common share purchase warrant. Each full warrant will be exercisable into one common share of the Company for 24 months from closing at $0.50. The securities issued under the private placement will be subject to a hold period of four months from the date of issuance in accordance with the policies of The TSX Venture Exchange.
The offering will be brokered through Jennings Capital Inc. (the "Agent") on a best efforts agency basis. The Agent will receive a cash commission of 8% of the gross proceeds of the offering, and Agent’s compensation warrants equal to 8% of the Units sold under the offering; each warrant exercisable into one common share for 24 months.
Proceeds of the offering will be used as follows:
- To complete a comprehensive two-phase work program, including approximately 3,000 metres of diamond drilling, on the Company’s Langu Gold Project,
- To exercise the Company’s purchase option on the Doi Ngom multi-commodity breccia pipe and conduct an expanded systematic sampling and shallow-hole drill program,
- For evaluation of potential new projects and general working capital.
The Company has received competitive quotes from drilling and other contractors and expects work on both projects to begin promptly upon completion of the Offering. The Company has also identified a number of possible new projects in the region, and will proceed with further due diligence on these opportunities as appropriate.
ON BEHALF OF THE BOARD OF
AMANTA RESOURCES LTD.
“Gerald D. Wright”
Gerald D. Wright,
President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.
This News Release is not to be disseminated in the United States. These securities have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless registered under the Securities Act or unless an exemption from registration is available.
The information provided in this news release may contain forward looking statements within the meaning of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on Amanta Resources Ltd.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described in forward looking statements.
