/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
TSX VENTURE EXCHANGE =MTO
VAL-D'OR, QC, April 19 /CNW/ - Metanor Resources Inc. ("Metanor" or the
"Company") is pleased to announce that it has entered into an agreement with
Canaccord Adams ("Canaccord Adams") pursuant to which Canaccord Adams will act
as lead agent in a fully marketed private offering ("the Offering") of units
(the "Units") to raise gross proceeds of $20 million. Each Unit will consist
of one common share of the Company (a "Common Share") and one half of one
Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant
will entitle the holder thereof to acquire one Common Share for a period of 2
years from the closing of the Offering. The price of the Units and the
exercise price of the Warrants will be negotiated between Canaccord Adams and
Metanor. The syndicate of agents also includes Industrial Alliance Securities
Inc. and Raymond James Ltd.
The net proceeds from the Offering will be used to fund the work program
to develop the Barry gold project through an open pit operation, to upgrade
the existing 500 tpd Bachelor gold mill to 750 tpd, to develop and explore the
underground extensions of the Bachelor gold deposit and for general corporate
purposes. Metanor is already working to rehabilitate its gold mill and also
started the permitting process for its future operations.
Work is currently underway on the Barry property. Surveying is being
carried out, the permitting process is under way for a 40,000-metric-ton bulk
sample (Genivar) and Metanor intends to begin the open pit operation as soon
as the permits have been obtained, before the end of summer 2007, if possible.
The Barry gold deposit, was evaluated by Geostat Systems International Inc. in
compliance with NI 43-101 for Murgor Resources (the previous owner), has
indicated resources of 35,500 oz Au (269,000 metric tons as 4.10 g/t Au) and
inferred resources of 67,600 oz Au (450,000 metric tons as 4.68 g/t Au) in
zones 43 and 45 and in the Main Zone (April 10, 2006). In addition, following
a drilling program carried out in 2006, a new evaluation is underway that
should contribute to increase these resources.
The Bachelor Lake Property is the cornerstone of Metanor's strategy, with
the potential resources it contains, which were evaluated by InnovExplo inc.,
in a NI 43-101 technical report, dated of October 31, 2005 as follows:
measured and indicated resources of 841,591 t at 7.79 g/t Au (or 210,857 oz of
gold) and inferred resources of 426,148 t at 6.52 g/t Au (or 89,366 oz of
gold). In addition to these resources and the high potential of the group of
properties, a 500 tpd gold mill valued at $27.8 M is erected on the property
(report prepared by Genivar on December 2005).
Repairs to the 500 tpd gold mill infrastructure having been completed,
Metanor has just initiated refurbishing work on internal components
(mechanical and electrical). The work will be carried out under the
supervision of Mr. Pierre Filteau and Mr. Harold Gauthier, working
respectively as superintendent and foreman of the Bachelor Lake mining
Mr. Yves Gagnon, P Eng. is the qualified person pursuant to National
Instrument 43-101 and supervised the technical information presented in the
The Offering is subject to certain conditions including, but not limited
to, the receipt of all regulatory approvals. Subject to meeting the applicable
listing requirements, including public distribution requirements, Metanor will
seek conditional listing approval for the Warrants underlying the Units.
The Common Shares, the Warrants and the Common Shares to be issued upon
the exercise of such Warrants have not been registered under the United States
Securities Act of 1933 (the "Act") and may not be offered or sold absent
registration under the Act or an applicable exemption from the registration
requirements thereof. This news release does not constitute an offer to sell
or a solicitation of an offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such jurisdiction or an exemption therefrom.
The TSX Venture Exchange does not accept any responsibility for the
adequacy or the accuracy of the press release.
For further information:
For further information: Serge Roy, President and CEO, Tel.: (819)