WEST VANCOUVER, BRITISH COLUMBIA – June 7, 2006 – Columbia Yukon Explorations Inc. (the “Company”), is pleased to announce that, further to its news release dated May 2, 2006, it has closed a non-brokered private placement of 3,109,228 units (the “Units”) at a price of $0.55 per Unit for gross proceeds of $1,710,075. Each Unit consists of one common share and one-half of a share purchase warrant with each whole warrant entitling the holder thereof to purchase an additional common share for 12 months at a price of $0.75 per common share.
In connection with the private placement the Company has agreed to pay a cash fee to certain finders equal to 7% of the gross proceeds raised from subscribers introduced to the Company by the applicable finder together with warrants entitling the holder to acquire that number of common shares as is equal to 10% of the number of Units sold to subscribers introduced to the Company by the finder.
All of the securities issued pursuant to the private placement are subject to a hold period expiring on October 7, 2006.
The proceeds from the private placement will be used for exploration and development of the Company’s properties including the Company’s recently acquired Storie property and for general working capital.
The Company also wishes to announce the recent appointment of Mr. Richard Fischer as the Company’s VP, Business and Exploration Development. Mr. Fischer has considerable experience in oil and gas and junior mining company activities and is based in Calgary, Alberta. Mr. Fischer is currently working as a Joint Interest Analyst Supervisor for ConocoPhillips and is a director and senior officer of Eveready Resources Corporation (“Eveready Resources”). As previously announced (see news release dated May 2, 2006), the Company recently entered into an Option Agreement with Eveready Resources with respect to the acquisition of the Storie molybdenum claims located in the Liard Mining Division in British Columbia. The Company believes that Mr. Fischer’s involvement in management and exploration matters will be of great assistance to it and in the development of the Storie property.
The Company is also pleased to announce that it has filed on SEDAR an updated technical report on its Barnes Creek property prepared by Bernhardt Augsten, P. Geo.
The Company is in the business of the exploration and development of natural resource properties. It presently holds interests or options to acquire interests in properties located in British Columbia, Manitoba and Labrador.
COLUMBIA YUKON EXPLORATIONS INC.
Signed: “Douglas L. Mason”
Douglas L. Mason, Chairman
The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this release. |
