(PRWEB) September 24, 2005
Solomon Resources Limited
Suite 900 - 475 Howe Street,
Vancouver, BC, Canada, V6C 2B3
Telephone (604) 669-6656
Telecopier (604) 684-9877
Web Site: http://www.solomonresources.ca
Vancouver, Canada, Solomon Resources Ltd. (SRB:TSX-V) announces that it has completed a non-brokered private placement of 1,926,000 units at a price of $0.35 each for proceeds of $674,100. The placement was oversubscribed by 426,000 units ($149,100).
Each unit consisted of one common share and one-half of a share purchase warrant. Each whole warrant entitles the holder to purchase one common share for two years at a price of $0.35 per share in the first year and $0.50 per share in the second year. The shares issued and shares issuable on the exercise of the warrants will be subject to restrictions on resale until January 22, 2005. If the closing trading price of SolomonÂs shares for five consecutive trading days equals or exceeds, after such four month restricted resale period, $0.45 per share in the first year or $0.60 per share in the second year, Solomon can give the warrant holders notice that they must exercise the warrants or the warrants will expire within 20 days of such notice. FinderÂs fees were paid to Golden Capital Securities Ltd., Bolder Investment Partners Ltd. and Canaccord Capital Corporation, all of Vancouver, B.C. and Blackmont Capital Inc. (formerly First Associates Investments Inc.) of Calgary, AB, consisting of cash commissions totalling $37,265 (7%) and warrants to purchase up to a total of 152,100 common shares (10%) for a period of 12 months at a price of $0.40 each.
The proceeds from the placement will be used to fund drilling of SolomonÂs Mongolia gold exploration projects. A 1,500 meter core drilling program commenced on the Bayantsagaan Gold Project, on September 12, 2005 (see Solomon prior news release dated August 8th, 2005).
About Solomon Resources Ltd.
Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of gold properties world wide. It is managed by a proven team of exploration geologists credited with the discovery and/or development of a number of significant deposits in the world, including the SNIP, Eskay Creek, and Brewery Creek deposits in Canada, the Segala gold deposit in Mali, the Chimney Creek, Mule Canyon, Ruby Hill, Mesquite, and Ortiz gold deposits in the United States, the Gosowong deposit in Indonesia, and the Cadia East deposit in Australia.
Solomon has significant gold exploration projects in Mongolia and Australia. Its shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit SolomonÂs website at http://www.solomonresources.ca.
Contact Information -
Keith A. Laskowski, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.