NEWS RELEASE
SELKIRK
METALS CORP.
1255 West
Pender Street, Vancouver, B.C.
V6E 2V1
Tel.:
(604) 687-2038 / Fax.: (604)
687-3141
TSX Venture Exchange: SLK
SELKIRK
CLOSES $10.9 MILLION FINANCING
October
16, 2007 - Selkirk Metals Corp. (“Selkirk” or the “Company”)
is
pleased to announce that it has closed, in two
separate tranches, its previously announced
non-brokered private placement. A total of 8,400,000 Flow-Through Units
(“FT Units”) were placed at a price of $1.30 per FT Unit, for aggregate
gross proceeds to the Company of $10,920,000. The first tranche, in the aggregate amount of 3,780,000 FT Units,
closed on October 10, 2007 (the “First Tranche”).
The second tranche, in the aggregate amount of 4,620,000 FT Units,
closed on October 15, 2007 (the “Second Tranche”).
Each FT Unit consists of one flow-though common share (the “FT Shares”)
and one half of one transferable common share purchase warrant (“Warrant”),
each whole Warrant exercisable for one additional common share at an exercise
price of $1.60. Warrants issued under the First Tranche
are exercisable into one additional common share of the Company on or before
April 10, 2009. Warrants issued under the Second Tranche
are exercisable into one additional common share of the Company on or before
April 15, 2009.
Selkirk paid finders' fees in the aggregate amount of
$537,875, being 5% of the gross proceeds procured by the finders.
As subscribers to
the private placement, Brian Kynoch (a director) and Debra Watkins (an officer)
of Selkirk, acquired either directly or indirectly an aggregate of 43,000 FT Units. No
commission or finders' fees were paid for their participation. The
participation by insiders in the private placement is considered to be a
“related party transaction” as defined under Ontario Securities Commission Rule
61-501 (the “Rule”). The transaction is exempt from the formal
valuation and minority shareholder approval requirements of the Rule as neither
the fair market value of the securities being issued nor the consideration
being paid exceeds 25% of Selkirk’s market capitalization.
The FT Shares and Warrants comprising the FT Units issued
under the First Tranche are subject to a hold period that expires on February
11, 2008, and the FT Shares and Warrants comprising the FT Units issued under
the Second Tranche are subject to a hold period that expires on February 16,
2008.
On Behalf of the Board of Directors of
Selkirk Metals Corp.:
(signed)
“Gordon Keevil”
Gordon
Keevil, President
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For further information on Selkirk Metals Corp. please
visit its website at www.selkirkmetals.com.
This
release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. All statements in this release, other
than statements of historical facts, that address future production, reserve
potential, exploration and development activities and events or
developments that management of Selkirk and Doublestar expects, are forward‑looking
statements. Although management believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance, and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploration and
development successes, continued availability of capital and financing, and
general economic, market or business conditions. Please see the public filings
of both Selkirk and Doublestar at www.sedar.com for further information.