Murgor arranges $1-million financing

2008-12-15 15:38 ET - News Release

Mr. Andre Tessier reports

MURGOR RESOURCES ENGAGES NORTHERN SECURITIES FOR MAXIMUM $1 MILLION PRIVATE PLACEMENT

Murgor Resources Inc. has engaged Northern Securities Inc. to act as its agent for a best-efforts private placement of up to $1-million.

The private placement comprises up to 3.75 million units at a price of eight cents per unit, for proceeds to Murgor of $300,000, and up to seven million flow-through units at a price of 10 cents per unit, for proceeds to Murgor of $700,000.

Each unit at eight cents will comprise one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of Murgor at a price of 15 cents for one year from the closing date, and thereafter at a price of 25 cents for a second year.

Each flow-through unit at 10 cents will comprise one flow-through common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Murgor at a price of 25 cents for a period of one year from the closing date, and thereafter at a price of 40 cents for a second year.

Murgor will use the proceeds from the placement of the flow-through units to incur Canadian exploration expenses on its properties in Saskatchewan, Manitoba and Quebec, and will use the net proceeds from the placement of the eight-cent units for working capital and general corporate purposes.

As consideration for acting as agent, Murgor has agreed to pay Northern a cash commission equal to 8 per cent of the total proceeds from the private placement, payable upon closing. In addition, Murgor will grant compensation options to Northern in a number equal to 10 per cent of the total number of eight-cent units and flow-through units sold. Each compensation option will entitle Northern to purchase, at an exercise price of eight cents, one common share and one common share purchase warrant. The warrants issued on the exercise of the compensation option may be exercised for one year following the closing of the private placement at an exercise price of 15 cents, and thereafter at a price of 25 cents for a second year.

Northern may appoint a selling group consisting of additional registered dealers approved by Murgor, for the purpose of arranging for purchasers of the eight-cent units and flow-through units.

The private placement will be affected pursuant to prospectus exemptions under applicable securities legislation and is expected to close on or before Dec. 31, 2008. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange, and to the signing of an agency agreement. The securities issued in the private placement will be subject to a four-month hold period under applicable securities legislation and the policies of the TSX Venture Exchange.

There are currently 33,798,560 common shares of Murgor issued and outstanding.