Adriana Announces $10 Million Non-Brokered Private Placement
TORONTO, ONTARIO -- (Marketwire) -- 10/28/10 -- Adriana Resources Inc. ('Adriana' or the 'Company') - (TSX VENTURE: ADI) is pleased to announce that it has arranged a non-brokered private placement (the 'Private Placement') of 27,027,027 Common Shares of the Company at a price of $0.37 per share for gross proceeds of approximately $10 million. In connection with the completion of the Private Placement, the Company will pay a finder's fee in the amount of $560,000.
All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the date of the closing. The Private Placement is subject to the approval of the TSX Venture Exchange. The Private Placement is expected to close in more than one tranche.
Allen J. Palmiere said 'The willingness of certain current shareholders and their overseas associates to make this at-the-market investment with no warrants enables us to minimize dilution to our existing shareholders while providing the capital necessary to advance our projects. The participants of the Private Placement have demonstrated confidence in and commitment to the Company, its projects, its management and board of directors. This is a very strong sign of support for which we are very grateful.'
The Company intends to use the net proceeds of the Private Placement to increase and upgrade its mineral resources by completing the assaying from the drill program completed in 2010, update the National Instrument 43-101 ('NI 43-101') compliant Technical Report and Mineral Resource Estimate that was issued on behalf of the Company by Watts, Griffis and McOuat (the 'NI 43-101 Report') on its Lac Otelnuk Property, engage additional consultants in Brazil to advance our permitting and detailed engineering/design, an advanced environmental study of our port facility and for general corporate purposes.
Adriana will continue to focus on developing strategic relationships with third parties to advance our Lac Otelnuk Property located the Labrador Trough, Nunavik, Quebec and to maximize the potential of the deep sea port located in the Minas Gerias region of Brazil.
ON BEHALF OF ADRIANA RESOURCES INC.
Allen J. Palmiere, President and CEO
Certain information regarding the Company, including the completion of the Private Placement, the Company's plans to increase and upgrade mineral resources and management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties. Without limitation, statements relating to potential mineralization and resources, exploration results, mining and development, future plans and objectives of the Company and imprecision of mineral resources estimates, are forward-looking statements that involve various degrees of risk. Certain important risk factors could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements including, without limitation, changes in the world wide price of mineral commodities and currency fluctuations, general market conditions, the uncertainty of future profitability and access to sufficient capital, risks inherent in mineral exploration, development, construction and mining operations, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, environmental risks, access to labour and services and competition from other companies. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and caution should be exercised on placing undue reliance on forward looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Contacts:
Adriana Resources Inc.
Connie Dos Santos
416-363-2200
cdossantos@adrianaresources.com
www.adrianaresources.com