Peat Resources Limited (TSX VENTURE:PET) (the "Company") announces that it has negotiated, subject to regulatory acceptance, the proposed settlement of $58,842.00 of its debt by issuing 558,420 common shares of the Company at $0.10 per share.
In May 2011, Peat Resources Limited engaged IBK Capital Corp. to complete a best efforts private placement of up to $1,000,000 under certain proscribed terms (see News Release of May 18, 2011). The company received proceeds of $60,000 under these terms with the exception of the broker's commission that was waived. This engagement remains in place with different terms reflecting current economic conditions. The offer consists of 10,000,000 common shares at $0.10. Subject to TSXV approval, IBK will be paid a cash commission of 10% of the amount raised and 10% of the amount raised in the form of non-transferable broker warrants. The proceeds will be used for working capital and pre-feasibility engineering work on the Company's peat fuel pellet production system in Stephenville, Newfoundland plus the acquisition and evaluation of additional peat resources in Newfoundland and Ontario.
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.
Peat Resources Limited
President and CEO
416 862-7889 (FAX)