Silk Road Resources Ltd. Announces Proposed Private Placement



    TORONTO, May 19 /CNW/ - Silk Road Resources Ltd. ("Silk Road" or the
"Company") (TSXV: SIL) announces that it is proposing to complete a
non-brokered private placement of up to 1,400,000 units of the Company (the
"Units") at a price of $0.25 per Unit for aggregate gross proceeds of up to
$350,000. Each Unit will be comprised of one common share in the capital of
the Company and one common share purchase warrant. Each common share purchase
warrant will entitle the holder thereof to acquire one common share at a price
of:

    
    -   $0.26 at any time prior to the date that is 12 months following the
        date of the closing of the private placement;
    -   $0.30 at any time after 12 months but before 24 months following the
        date of the closing of the private placement; or
    -   $0.35 at any time after 24 months but before 36 months following the
        date of the closing of the private placement.
    

    It is anticipated that the Units will be subscribed for by Robert Power,
Chairman of the Company, as to 1,000,000 Units and Anthony Patriarco, a
director of the Company, as to 400,000 Units. Since both Mr. Power and Mr.
Patriarco are insiders of the Company, the private placement will be a
"related party transaction" for the purposes of Multilateral Instrument 61-101
- Protection of Minority Security Holders in Special Transactions ("MI
61-101"). The Company will rely on the exemptions from the formal valuation
and minority approval requirements of MI 61-101 contained in section 5.5(a)
and section 5.7(a), respectively, of MI 61-101 as neither the fair market
value of the subject matter of, nor the fair market value of the consideration
for, the private placement will exceed 25% of the Company's market
capitalization.
    The private placement is subject to the approval of the TSX Venture
Exchange. The private placement is expected to close on or about May 22, 2009.
The Company intends to use the proceeds of the private placement for general
working capital purposes for the period until it completes its previously
announced business combination with EurOmax Resources Limited ("EurOmax"). The
Company may loan part of the proceeds of the private placement to EurOmax for
its general working purposes for the period until the business combination is
completed.

    Forward Looking Statements:

    Certain information regarding the Company set forth in this press
release, including management's assessment of the Company's future plans and
operations contains forward looking statements that involve substantial known
and unknown risks and uncertainties. These forward looking statements are
subject to numerous risks and uncertainties, some of which are beyond the
Company's and management's control, including but not limited to, the impact
of general economic conditions, industry conditions, fluctuation of commodity
prices, fluctuation of foreign exchange rates, imperfection of reserve
estimates, environmental risks, industry competition, availability of
qualified personnel and management, stock market volatility, timely and cost
effective access to sufficient capital from internal and external sources. The
Company's actual results, performance or achievement could differ materially
from those expressed in or implied by, these forward looking statements and
accordingly, no assurance can be given that any of the events anticipated to
occur or transpire from the forward looking statements will provide any
benefits to the Company.

    
       The TSX Venture Exchange does not accept responsibility for the
                    adequacy or accuracy of this release.
    

    %SEDAR: 00012266E




For further information:

For further information: please contact David Bell, CEO of Silk Road at
(416) 624-8794

Organization Profile

SILK ROAD RESOURCES LTD.

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