Teslin NEWSTeslin Signs Letter Agreement to Acquire Queensgate and Announces Financing1/10/2011 9:00:06 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Jan 10, 2011 (Marketwire via COMTEX News Network) --
TeslinRiverResources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") ispleasedto announce that a Letter Agreement has been signed withQueensgateResources Corporation ("Queensgate") proposing to purchaseall theoutstanding shares of Queensgate. The Letter Agreement proposesTeslinissuing one share for each outstanding share of Queensgate.
Queensgateisa private company registered in Quebec. Through its 100 percentownedsubsidiary in Nevada, Queensgate owns 100% of the Mustang Propertyandthe Morning Star Property in the Walker Lane mineral trend inNevada.
About Mustang
TheMustang Property is comprised of66 claims that are 100% owned byQueensgate. Surface sampling on theMustang Property in 2008 included11.92g/t Au and 74.1g/t Ag collectedon an adjacent claim within 60meters of the boundary. A 8 hole, 1,800meter reverse circulationdrilling program is planned for the property.
About Morning Star
TheMorningStar Property is comprised of 97 claims with Queensgate having100%mineral rights with a 3% NSR. A 40 line-kilometer IP surveyidentifiedtwo significant drill targets for which a 8 hole, 1,500 meterreversecirculation drilling program has been planned.
"Wearevery pleased to be in the final stages of acquiring theseexcellentgold/silver targets," said Michael Sweatman, President and CEOofTeslin. "We look forward to moving ahead quickly on the drillprogramsand further exploration as warranted."
TheCompany also announcesthat it is proceeding with a non-brokered privateplacement (the"Private Placement") to raise up to $1,250,000. The fundsfrom thisfinancing will be used to start exploration on the newproperties andcontinue work at the Tagai property and as general workingcapital.
Thefinancing will consist of 12,500,000 units (the "Units") at a price of
.10per Unit. Each unit will consist of one common share and one halfsharepurchase warrant (the "Warrants"). Each whole Warrant will allowtheholder to acquire an additional common share of the Company at aprice of
.15 per share for a period of two years following the date ofissuance of the unit. In the event the common shares of the Companyclose for 20 consecutive trading days at an average price of
.30orabove, the Company shall have the right to accelerate the conversionofthe Warrants at the exercise price. Any warrants that remainunexercisedwill expire 30 days after issuance of notice of forcedconversion bythe Company, which may be completed by way of pressrelease.
Finder'sfees may be paid on all or any portion of thePrivate Placement. Theprivate Placement is subject to regulatoryapproval and the securitieswill be subject to a four month resalerestriction.
About Teslin River Resources Corp.
TeslinRiverResources Corp.'s strategy is to build shareholder value byacquiring,exploring and developing a portfolio of copper andcopper-gold porphyryproperties throughout North and South America.Teslin has optioned theTagai and Kenny Dam properties in centralBritish Columbia. Prospectinghas returned strong copper anomalies someof which are accompanied byhigh gold values. Teslin also holds the RandClaims located approximately7 kilometres southeast of Horsefly in theCariboo region of centralBritish Columbia. Teslin has optioned the RandClaims to Gold FieldsLimited (GFI: NYSE) which is also drilling underan option agreement withFjordland Exploration Inc. (FEX: TSX-V) andCariboo Resources Ltd. (CRB:TSX-V) on contiguous properties. Based onthe reported work and drillingon the surrounding properties, the areais considered prospective for alarge copper-gold porphyry body.
About Queensgate Resources Corporation
QueensgateResourcesCorporation is a private company, founded in 2008, whoseprincipalinterest has been exploring and developing epithermal preciousmetalresource potential in Nevada. Queensgate is currently developingtwoproperties, both having sufficient work to develop drilling programsforthe 2011 drilling season. The acquisitions and work programs havebeenled by Mr. John Kerr, whose has 40 years of expertise andexperience inNevada precious metal deposits and Mr. Kerr will continueto providesimilar opportunities to the management team of Teslin.
ON BEHALF OF THE BOARD
Michael Sweatman, President and CEO
SOURCE: Teslin River Resources Corp.
Nicola Street Capital Mike Rodger 604.569.0056
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