More NewsPeat Resources Limited-$3.5 Million Raised for Pilot-Scale Production Facility
CCNMATTHEWS
Peat Resources Limited
August 24, 2006 - 12:19:53 PM
Peat Resources Limited-$3.5 Million Raised for Pilot-Scale Production Facility
TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2006) -
Further to its news release of August 11, 2006, Peat Resources Limited (TSX
VENTURE:PET) announces that, through IBK Capital Corp as agent, it has closed
its C$3,500,000 private placement of units and special warrants with RAB
Special Situations (Master) Fund Limited ("RAB"). RAB has purchased 9 million
units at C$0.20 per unit (C$1,800,000). Each unit comprises one common share
and one common share purchase warrant; each common share purchase warrant is
exercisable for two years from the closing date at an exercise price of C$0.30
per common share. In addition, RAB has purchased 8,500,000 special warrants at
C$0.20 (C$1,700,000); each special warrant permits the holder to convert it to
one unit.
The hold period for the above securities expires on December 24, 2006. IBK
Capital Corp is being paid a cash fee of 10% of the proceeds raised, and
broker warrants equal to 10% of the units and special warrants sold. Each
broker warrant entitles the holder to acquire one common share at $0.20 for a
two-year period.
The proceeds will be used for the design and operation of a pilot-scale
production facility leading to an engineering feasibility report and
production of peat fuel for marketing purposes; to complete resource
evaluation of additional peat properties in Canada, including northern Ontario
and western Newfoundland; and for working capital.
Peat Resources Limited was formed to develop and market peat fuel on a
profitable and sustainable basis. The product is intended for customers
requiring a consistent long-term supply of economically favourable and
environmentally acceptable fuel.
FOR FURTHER INFORMATION PLEASE CONTACT:
Peat Resources Limited Peter Telford CEO (416) 862-7885 (416) 862-7889 (FAX)
peatfuel@peatresources.com www.peatresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy of this new release.
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