The Company is currently seeking long term financing arrangements to ensure that sufficient funds are available to proceed with the further development of the Mt. Freegold properties in the Yukon.
With this focus in mind, the Company has decided not to proceed with any further expenditures on the Whalesback-Shoal Arm Property in Newfoundland. Accordingly, the Company has relinquished its option back to British Canadian Mines Ltd.
With a view to maximizing returns to shareholders and to reducing its exposure to the vagaries of the financial markets, FM Resources Corp. will focus its efforts on more advanced projects capable of producing a positive cash flow in the near term.
The Company also announces a Private Placement financing of $5,000 subject to Vancouver Stock Exchange approval, of 33,334 units at $0.15 per unit. Each unit will consist of one common share without par value in the capital of the Company and one non-transferable share purchase warrant. Each warrant will entitle the placee to purchase an additional share for a period of two years at a price of $0.15 per share if exercised in the first year and $0.20 per share if exercised in the second year. The funds will be added to working capital.
ON BEHALF OF THE BOARD
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.