Nov. 2, 2010 (Filing Services Canada) -- Terreno Resources Corp. (TNO - TSX Venture), is pleased to announce that it has closed the final tranche of its non-brokered private placement (the "Placement") announced on September 20, 2010 and September 28, 2010. Under this tranche of the Placement, the Company raised a total of $2,770,499.55 through the issuance of 18,469,997 units at a price of $0.15 per unit. Each unit consists of one common share and one share purchase warrant, with each share purchase warrant entitling the holder to acquire an additional common share of the Company at a price of $0.20 per share for a two year period (the"Units"). The securities issued under this tranche of the Placement are subject to a four month hold period expiring on March 2, 2011.
Under this Placement, the Company raised aggregate gross proceeds of $3,499,999.95 through the issue of 23,333,333 units.
In accordance with applicable securities laws and the policies of the TSX Venture Exchange, the Company paid finders' fees with respect to portions of the Placement amounting to $269,199.96 in cash commissions and the issuance of 2,226,666 warrants, each warrant entitling the holder to purchase one common share at a price of $0.20 per share for a two year period ending October 25, 2012.
Insiders and related parties have together directly and/or indirectly subscribed for a total of 9,266,670 Units from the financing, and accordingly those related parties may acquire up to an additional 9,266,670 common shares in the capital stock of the Company which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501..
Completion of this Placement will allow Terreno to proceed with an initial exploration program on the Company's Amarillo Project located in the El Indio gold belt in the San Juan province of Argentina, and to accelerate its strategy of identifying and analyzing new projects in South America.
About Terreno Resources
Terreno, meaning "of the earth" in Spanish, represents the Company's focus on natural resource opportunity development in South America. Over time Terreno intends to assemble a portfolio of projects with short, medium and long term liquidity capabilities. We intend to take advantage of the vast array of natural resource exploitation opportunities in South America and plan to become a leading developer of assets on this exciting continent of South America through acquisitions or partnerships.
On behalf of the Board of Directors
"John Icke"
Interim Chief Executive Officer & Director
For further information, please contact:
Nicola Street Capital
Tel: 604.569.0056
Neither the 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 release.
Terreno Resources Corp.
1430 - 800 West Pender Street
Vancouver, BC, Canada V6C 2V6
Tel 604.688.8316
Fax 604.684.2990
info@terrenoresources.com
www.terrenoresources.com
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