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Base metals and diamonds in the NWT, Canada

Message: Closes C$5.0 Million Private Placement Financing

Closes C$5.0 Million Private Placement Financing

posted on Dec 29, 2009 03:49PM
December 29, 2009
Darnley Bay Resources Closes C$5.0 Million Private Placement Financing
TORONTO, ONTARIO--(Marketwire - Dec. 29, 2009) -


Darnley Bay Resources Limited ("Darnley Bay" or the "Company") (TSX VENTURE:DBL) is pleased to announce that it has closed its previously announced private placement. The fully-subscribed private placement, conducted by Haywood Securities Inc. ("Haywood") on a best efforts agency basis, raised gross proceeds of $5,000,000.10 through the sale of 24,443,368 units in the capital of the Corporation (the "Units") at $0.15 per Unit, and 8,889,966 flow-through shares for purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") at $0.15 per Flow-Through Share.

Each Unit consists of one common share ("Common Share") and one half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share at an exercise price of C$0.25 for a period of 3 years from December 29, 2009.

Under applicable securities legislation and policies of the TSX Venture Exchange, the securities issued in the private placement are subject to a hold period expiring on April 30, 2010.

Haywood received a cash commission equal to 8.0% of the aggregate gross proceeds raised in connection with the offering, and was issued compensation options entitling Haywood to purchase the number of Units equal to 10.0% of the aggregate number of Units and Flow-through Shares sold under the offering at an exercise price of $0.15 per Unit for a period of 24 months following the closing date of the offering.

Darnley Bay intends to use the gross proceeds from the offering for the verification of drill targets and initial drilling to locate ore bodies on lands totalling approximately 213,710 hectares surrounding Paulatuk, Northwest Territories, working capital and general corporate purposes.

About Darnley Bay Resources Limited:

The Company was formed in 1993 to explore and develop an area of geophysical significance in the Northwest Territories of Canada. Initial base metal exploration fortuitously resulted in the discovery of diamonds, indicating that the area is host to both metallic and non-metallic mineral deposit interests. The Company's objectives are to secure and maintain successful financing partnerships to continue exploration for base metals, gold and diamonds that will result in the development of a profitable mining venture.
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