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Jun 29, 2007
NEWPORT INCREASES SIZE OF OFFERING TO $4,900,000 FOR MULGA TANK
Newport Exploration Ltd. (the "Company") is pleased to announce that it has agreed with PowerOne Capital Markets Limited ("Power One") to increase the size of its previously announced private placement financing by an additional $1,400,000 for a total private placement size of up to $4,900,000. Under the increased offering, the Company has agreed to issue up to 14,000,000 units of the Company (the "Units") at a price of $0.35 per unit. Each unit will consist of one common share of the Company (the "Shares") and one share purchase warrant (the "Warrants") with each Warrant entitling the holder to acquire a further common share of the Company at a price of $0.50 per share for a term of 2 years.
The Company had also granted the agent an over-allotment option, exercisable by notice at least 2 days prior to closing of the Private Placement, to increase the Private Placement by up to 15% or 2,100,000 Units.
Under terms of the engagement PowerOne will receive a commission equal to 6.5% of the gross proceeds from the sale of Units, payable in cash or Units at PowerOne's election. PowerOne will also be entitled to receive agent's warrants entitling them to acquire up to 6.5% of the number of Units sold in the Private Placement at a price of $0.35 per Unit. In accordance with applicable securities laws the Shares and the Warrants will be subject to a four month hold period from the date of the closing of the Private Placement.
Proceeds from the Private Placement will be used for further exploration of the Company's Mulga Tank nickel-uranium prospects in Western Australia and for general working capital.
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The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.