Kingston, Ontario, December 15, 2008 – Murgor Resources Inc. (TSX-V: MGR) (“Murgor”) today announced that it has engaged Northern Securities Inc. (“Northern”) to act as its agent for a best-efforts private placement of up to $1 million. The private placement consists of up to 3,750,000 units at a price of $0.08 per unit, for proceeds to Murgor of $300,000, and up to 7,000,000 “flow-through” units at a price of $0.10 per unit, for proceeds to Murgor of $700,000.
Each unit at $0.08 will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of Murgor at a price of $0.15 for one year from the closing date, and thereafter at a price of $0.25 for a second year.
Each “flow-through” unit at $0.10 will consist of one “flow-through” common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Murgor at a price of $0.25 for a period of one year from the closing date, and thereafter at a price of $0.40 for a second year.
Murgor will use the proceeds from the placement of the “flow-through” units to incur Canadian Exploration Expenses on its properties in Saskatchewan, Manitoba and Québec, and will use the net proceeds from the placement of the $0.08 units for working capital and general corporate purposes.
As consideration for acting as agent, Murgor has agreed to pay Northern a cash commission equal to 8% of the total proceeds from the private placement, payable upon closing. In addition, Murgor will grant compensation options to Northern in a number equal to 10% of the aggregate number of $0.08 units and “flow-through” units sold. Each compensation option will entitle Northern to purchase, at an exercise price of $0.08, one common share and one common share purchase warrant. The warrants issued on the exercise of the compensation option may be exercised for one year following the closing of the private placement at an exercise price of $0.15, and thereafter at a price of $0.25 for a second year.
Northern may appoint a selling group consisting of additional registered dealers approved by Murgor, for the purpose of arranging for purchasers of the $0.08 units and “flow-through” units.
The private placement will be affected pursuant to prospectus exemptions under applicable securities legislation and is expected to close on or before December 31, 2008. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange, and to the signing of an Agency Agreement. The securities issued in the private placement will be subject to a four-month hold period under applicable securities legislation and the policies of the TSX Venture Exchange.
There are currently 33,798,560 common shares of Murgor issued and outstanding.
About Murgor Resources
Murgor Resources Inc. is a mineral exploration and development company focused on copper, zinc and gold deposits. Murgor has a number of agreements with HudBay Minerals (TSX:HBM) and is currently acquiring a 100% interest in three deposits in Manitoba and Saskatchewan, adjacent to the Snow Lake and Flin Flon, Manitoba mining districts. Murgor is targeting polymetallic massive sulphide deposits in one of the most prolific greenstone belts in Canada and the world.
For more information, please visit Murgor’s website at www.murgor.com or contact:
André C. Tessier, President and CEO Ashleigh Meyer
MURGOR RESOURCES INC. Investor Relations - The Equicom Group
Tel: (613) 546-7503 or 1 888 891-3330 Tel: (416) 815-0700 ext. 266 or 1 800 385-5451
Fax: (613) 546-7318 Fax: (416) 815-0080
E-mail:
info@murgor.com E-mail:
ameyer@equicomgroup.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
