August 11, 2008
Henry Neugebauer, the President of Prospector Consolidated Resources Inc. wishes to update shareholders on the
Company’s progress. The Company is continuing to take the necessary steps to facilitate its reinstatement for
trading on Tier 2 of the TSX Venture Exchange.
The Company wishes to clarify that the investor relations contract announced October 2, 2007 with William
McCarty Consultants was never consummated and no cash, shares or options were ever issued. The Company may
re-initiate the contract in the future.
As announced August 9, 2007, the Company entered into an option agreement with Copper Ridge Explorations Inc.
(“Copper Ridge”), a publicly traded company listed on the TSX Venture Exchange for the right to acquire a 100%
interest in the Kalzas tungsten project. Under terms of the agreement, the Company may earn a 100% interest in
consideration for $25,000, issuance of an aggregate of 6,000,000 common shares and 2,000,000 warrants. The
Company also agreed to incur $4,080,000 in exploration expenditures over a four year period. There is a 2% NSR
on the property. Due to poor market conditions, Copper Ridge has agreed to reduce the 2008 work commitment
from $750,000 to $500,000.
The Company announces that it will be offering, on a private placement basis, 5,000,000 units as follows:
- 2,900,000 units on a flow-through basis at $0.10 for gross proceeds of $290,000. Each flow-through
unit will consist of one flow-through common share and one non-flow-through warrant exercisable at
$0.15 for two years; and
- 2,100,000 units on a non-flow-through basis at $0.10 for gross proceeds of $210,000. Each unit will
consist of one common share and one and one-half warrant exercisable at $0.15 for two years.
The proceeds will be used for working capital and for exploration on the Company’s Kalzas project. A finder’s fee
will be payable, in accordance with the policies of the regulatory authorities. The private placement financing is
subject to approval of the TSX Venture Exchange.
The Company will update shareholders as events occur.
ON BEHALF OF THE BOARD
PROSPECTOR CONSOLIDATED RESOURCES INC.
Per:
Henry Neugebauer,
President
This press release has been prepared by management. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
