Jul 07, 2006
Kermode Closes $1.7 Million Financing
News Release #2006-8
Kermode Resources Ltd. (the "Company") announces that it has closed on its non-brokered private placement announced on June 26, 2006 and issued 5,483,868 flow-through common shares ("FT Shares") at a price of $0.31 per FT Share for gross proceeds of $1,700,000. The Company has paid a finder's fee of $85,000 cash and issued 548,387 non-flow through warrants ("Finder's Fee Warrants"), exercisable at $0.31 per share for a period of two years from the date of issuance, as finder's fees in connection with the private placement. The FT Shares and any shares acquired on exercise of the Finder's Fee Warrants are subject to a four-month hold period expiring November 8, 2006.
MineralFields Group is a Toronto based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.
The proceeds of this financing will be used to explore Kermode's Jackson's Arm property in Newfoundland. The project has the potential to contain two different, but related, deposit types. Firstly a bulk tonnage open pittable gold deposit and secondly a higher-grade sediment hosted gold deposit. The 104 holes drilled to date on the property have partially defined the bulk tonnage potential and also point the way to the higher grade sediment hosted potential.
Kermode also announces that it has closed on the second and final tranche of its non-brokered private placement announced on April 26, 2006 (and amended May 8, 2006) and issued 480,000 common shares (the "Shares") at a price of $0.25 per Share for gross proceeds of $120,000. The Company has paid a finder's fee of $9,600 in connection with the private placement. The Shares are subject to a four-month hold period expiring October 24, 2006.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
No Stock Exchange Has Approved or Disapproved The Information Contained Herein