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2007
2006
2005 |
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| | July 26, 2006
Rochester Resources Arranges $1.8 Million Private Placement
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| | Vancouver, Canada - Rochester Resources Ltd. (TSXV: RCT; OTCBB: RCTFF and Frankfurt: R5I): Mr. Douglas Good, President, is pleased to announce that the Company has arranged a non-brokered private placement (the "Private Placement") of 2,000,000 units (the "Units") at a purchase price of $0.90 per Unit for proceeds of $1.8 million. Each Unit consists of one common share and one transferable common share purchase warrant exercisable into an additional common share for a period of two years, at an exercise price of $1.15 in the first year and thereafter, at an exercise price of $1.30, subject to acceleration in certain circumstances. The bulk of the Private Placement has been subscribed to by three associated funds who, on closing, will own 14.6% of the 13,237,735 outstanding common shares of the Company. The common shares and the warrants are subject to a four month hold period from the date of the closing which, subject to receipt of TSXV final clearance, is scheduled to take place on July 28, 2006. No finders fees are payable on the transaction.
The funds will be used to finance further development and exploration of the Company's Mina Real gold/silver property interests in Nayarit State, Mexico (the "Mina Real Project") and for general working capital purposes. Site preparation and civil works for the previously announced conventional mill and related infrastructure at the Mina Real Project is well underway. Firm contracts for the purchase and delivery of key components of the mill have been placed with suppliers with deliveries scheduled over the coming weeks. The plant is scheduled for completion during the fourth quarter of 2006 and will have a design capacity of 300 tonnes/day, with an initial start-up capacity contemplated at 200 tonnes/day.
The Company has advanced a total of US$1.68 million under the 2006 Work Program and earned an initial 40% interest in the Mina Real Project. A further 11% can be earned on payment of US$900,000 in the form of option payments. Negotiations are continuing with the Company's joint venture partner for acquisition of the remaining 49% interest in the Mina Real Project.
ON BEHALF OF THE BOARD
"Douglas Good"
Douglas Good, President & CEO
Investor information contact:
Douglas Good
Tel: (604) 484-6614
Website: www.rochesterresourcesltd.com
Forward Looking Statements
This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. |
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| | You can view the Next News Releases item: Tue Aug 1, 2006, Rochester Closes $1.8 Million Private Placement
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