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Jul 25, 2007
NEWPORT CLOSES BROKERED PRIVATE PLACEMENT OF 16,100,000 UNITS AT $0.35 FOR TOTAL GROSS PROCEEDS OF CDN$5,635,000
Further to its news releases of June 26, 2007 and June 29, 2007, Newport Exploration Ltd. (the "Company") announces that it has now completed a brokered private placement resulting in the issuance of a total of 16,100,000 units at a price of $0.35 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each warrant entitling the holder to acquire a further common share of the Company at a price of $0.50 per share until July 24, 2009. Total gross proceeds of the private placement were $5,635,000.
The units were sold under an agency agreement between the Company and PowerOne Capital Markets Inc. pursuant to which the Company paid PowerOne a commission of 6.5% of the gross proceeds, plus administrative and legal fees. The Company also issued a total of 1,046,500 non-transferable compensation options with each compensation option entitling the holder to acquire one unit at an exercise price of $0.35 until July 24, 2009.
In accordance with applicable securities laws, the shares, the warrants and the compensation options will be subject to a four month hold period expiring November 25, 2007.
Proceeds from the Private Placement will be used for further exploration of the Company's Mulga Tank nickel-uranium prospect 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.