VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2011) - Parlane Resource Corp. (TSX VENTURE:PPP) (the "Company") is pleased to announce that it has arranged a non-brokered private placement of up to 3 million non-flow-through units (the "NFT Units") of the Company at a price of $0.20 per unit, and of up to 3 million flow-through shares (the "FT Shares") at a price of $0.25 per share, for aggregate gross proceeds of up to $1,350,000 (the "Offerings").
Each NFT Unit is comprised of one common share of the Company and one-half of a common share purchase warrant (a "Warrant"). Each Warrant may be exercised by the holder into one common share of the Company at an exercise price of $0.30 for a period of 24 months from closing except that, if after the expiry of all resale restrictions, the closing price of the Company's shares on the TSX Venture Exchange is $0.50 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Warrants, in which case they will expire 30 days after the giving of such notice.
The Company will pay finders' fees in cash equal to 6% of subscriptions for NFT Units or FT Shares as may be attributable to such finders, and issue finders' warrants to registered dealers or exempt market dealers in an amount equal to 8% of NFT Units or FT Shares subscribed for, with such finders' warrants being exercisable into one common share of the Company at a price of $0.20 per share for a period of 12 months from closing.
Closing of the Offerings is subject to receipt of TSX Venture Exchange acceptance. Securities issued under the Offerings will be subject to a hold period which will expire four months and one day from the date of closing.
In addition to working capital, the proceeds from the Offerings will be used to commence drilling on the Company's Big Bear Project which is situated between the Blackwater Gold and Capoose projects in Central British Columbia, and to continue exploration on the Mercedes gold-silver project in Sonora, Mexico.
ON BEHALF OF THE BOARD
Robert Eadie, President, Chief Executive Officer and Director
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.
Contact Information:
Robert Eadie, President
Chief Executive Officer and Director
1-604-602-4935
1-604-602-4936 (FAX)
info@parlaneresource.com
www.parlaneresource.com