Trading Symbol: PRS.H
VANCOUVER, Feb. 1, 2012 /CNW/ - Prism Resources Inc. (the "Company") (NEX: PRS.H) is pleased to announce it has closed the third tranche
of its previously announced non-brokered private placement (news
releases dated September 15, 2011, November 15, 2011 and December 23,
The third tranche of the private placement consisted of the issuance of
130,165 units (the "Units") at a price of $0.075 per Unit for gross proceeds of $9,762. Each
Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common
share of the Company at a price of $0.10 until February 1, 2013. The
securities issued under the third tranche are subject to a hold period
expiring on June 2, 2012.
Under the first, second and third tranche of the non-brokered private
placement the Company issued in aggregate 13,332,997 Units for total
gross proceeds of $999,975. No finder's fees were paid in connection
with the private placement.
The Company has been advised by Mr. Robert Baxter that he has acquired a
total of 2,200,000 common shares of the Company at a price of $0.075
per share. These shares were acquired in the second and third tranches
of the private placement.
As a result of the acquisition, Mr. Baxter now holds 2,200,000 common
shares of the Company representing approximately 10.5% of the issued
and outstanding common shares of the Company, as of the date hereof, on
a non-diluted basis.
An Early Warning Report respecting the acquisition has been filed on
SEDAR and can be viewed at www.sedar.com.
Mr. Baxter acquired the shares referred to above for investment purposes
only. The investments will be reviewed on a continual basis, and Mr.
Baxter's holdings may be increased or decreased in the future,
depending on economic or market conditions or matters relating to the
On behalf of the Board of Directors of Prism Resources Inc.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Statements contained in this news release that are not historical facts
constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws and are
based on expectations, estimates and projections as of the date of this
release. Forward-looking statements include, without limitation,
possible events and statements with respect to possible events. The
words "is expected" or "estimates" or variations of such words and
phrases or statements that certain actions, events or results "may" or
"could" occur and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable
by the Company as of the date of such statements, are inherently
subject to significant business, economic and competitive uncertainties
and contingencies. The estimates and assumptions of the Company
contained in this release which may prove to be incorrect, include, but
are not limited to the ability of the Company to secure financing on
the proposed terms and for the aggregate amount. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include, but
are not limited to: fluctuations in the spot and forward price of gold
or certain other commodities; changes in national and local government
legislation, taxation, controls, regulations and political or economic
developments in Canada, or other countries in which the Company may
carry on business in the future; business opportunities that may be
presented to, or pursued by, the Company; operating or technical
difficulties in connection with mining activities; the speculative
nature of gold exploration and development, including the risks of
obtaining necessary licenses and permits; diminishing quantities or
grades of reserves; and contests over title to properties, particularly
title to undeveloped properties. In addition, there are risks and
hazards associated with the business of gold exploration, development
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion losses (and the risk of inadequate insurance, or the
inability to obtain insurance, to cover these risks). Many of these
uncertainties and contingencies can affect the Company's actual results
and could cause actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or on
behalf of, the Company. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements are provided for the purpose of
providing information about management's expectations and plans
relating to the future. All of the forward-looking statements made in
this release are qualified by these cautionary statements and those
made in our other filings with the securities regulators in Canada.
These factors are not intended to represent a complete list of the
factors that could affect the Company. Although the Company believes
that the expectations in the forward-looking statements are reasonable,
actual results may vary, and future results, levels of activity,
performance or achievements cannot be guaranteed.
SOURCE Prism Resources Inc.
For further information:
Scott M. Ross
Prism Resources Inc.