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 |   Fri Feb 24, 2006
Mediterranean Closes $6.63 Million Brokered Private Placement and Graduates to TSX Venture Tier 2 Culminating the Restructuring Process
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| | Vancouver, B.C., February 24, 2006 -- Mediterranean Resources Ltd. (TSX-V:MNR) (the "Company") is pleased to report that, further to its news releases of September 28, 2005, October 28, 2005 and February 3, 2006, it has closed its brokered private placement comprising of 26,522,600 units ("Units") at a price of $0.25 per Unit for gross proceeds of $6,630,650. Each Unit consists of one common share ("Share") and one-half of one share purchase warrant ("Warrant"). Each whole Warrant is exercisable for a period of two years at a price of $0.35 per share.
The Company engaged the services of Northern Securities Inc. of Toronto, Ontario, and Loeb Aron & Company Ltd. of London, U.K. to act as co-lead agents in connection with the private placement. The Company would like to thank the agents for their work in raising funds for the Company. In consideration for their services, the Company has paid aggregate cash commissions of $489,049 (approximately 7.5%) and issued an aggregate 2,608,260 Agent's Options. Each Agent's Option entitles the holder to acquire one Unit at $0.25 for two years.
In conjunction with closing the private placement, the TSX Venture Exchange has approved the Company's graduation from the NEX board to Tier 2 of the Exchange effective Monday, February 27, 2006 under the symbol "MNR". This culminates the Company's efforts over the past 18 months to restructure its affairs. The Company's primary business focus will be the continued exploration and development of the Tac and Corak gold properties in Turkey that the Company holds under option from Teck Cominco Limited.
The proceeds of the offering will be used for the exploration of both Tac and Corak including completing a 5,000 metre drill program on each of the Tac and Corak properties to test the extent of certain gold mineralization and also for working capital purposes. The 2006 total budget for these work programs is US$1,490,000.
Recently the Company completed a ten for one share consolidation, changed its name and settled certain debts (for 24,390 shares). After completion of this offering the Company will have a total of 39,185,233 common shares issued and outstanding (fully diluted; 62,119,308 shares). The Company has granted a total of 470,000 incentive stock options to certain of its officers, directors, employees and consultants.
The Company has filed a Filing Statement dated February 24, 2006 with the TSX Venture Exchange, which has been filed on SEDAR under the Company's profile. The Filing Statement provides a complete update and overview of the Company's business and status.
All securities issued with respect to the private placement are subject to a hold period expiring June 25, 2006.
ON BEHALF OF THE BOARD
"Peter J. Guest"
604 -- 669-3397
CEO and President
www.medresources.ca
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. |
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