|
Prospector
Consolidated Resources Inc. � Update
August 11, 2008
Henry Neugebauer, the
President of Prospector Consolidated
Resources Inc. wishes to update shareholders on the Company�s
progress. The Company is continuing to take the necessary steps to facilitate
its reinstatement for trading on Tier 2 of the TSX Venture Exchange.
The Company wishes to
clarify that the investor relations contract announced October 2, 2007 with
William McCarty Consultants was never consummated and no cash, shares or
options were ever issued. The Company may re-initiate the contract in the
future.
As announced August 9, 2007,
the Company entered into an option agreement with Copper Ridge Explorations
Inc. (�Copper Ridge�), a publicly traded company listed on the TSX Venture
Exchange for the right to acquire a 100% interest in the Kalzas tungsten
project. Under terms of the agreement, the Company may earn a 100% interest
in consideration for $25,000, issuance of an aggregate of 6,000,000 common
shares and 2,000,000 warrants. The Company also agreed to incur $4,080,000 in
exploration expenditures over a four year period. There is a 2% NSR on the
property. Due to poor market conditions, Copper Ridge has agreed to reduce
the 2008 work commitment from $750,000 to $500,000.
The Company announces that
it will be offering, on a private placement basis, 5,000,000 units as
follows:
1. 2,900,000
units on a flow-through basis at $0.10 for gross proceeds of $290,000. Each flow-through unit will consist
of one flow-through common share and one non-flow-through warrant exercisable
at $0.15 for two years; and
2. 2,100,000 units on a
non-flow-through basis at $0.10 for gross proceeds of $210,000. Each unit
will consist of one common share and one and one-half warrant exercisable at
$0.15 for two years.
The proceeds will be used for working capital and for
exploration on the Company�s Kalzas project. A finder�s fee will be payable,
in accordance with the policies of the regulatory authorities. The private
placement financing is subject to approval of the TSX Venture Exchange.
The Company will update shareholders as events occur.
ON BEHALF OF THE BOARD PROSPECTOR CONSOLIDATED RESOURCES
INC. Per:
Henry Neugebauer, President
This press release has been prepared by management. The
TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
|