Kirrin Resources closes $798,000 private placement

2009-12-23 16:06 NT - News Release

Mr. Derek Moran reports

KIRRIN RESOURCES CLOSES FULLY SUBSCRIBED FLOW-THROUGH OFFERING

Kirrin Resources Inc. has completed the non-brokered private placement (see Stockwatch Nov. 19, 2009). Kirrin has issued 5.7 million flow-through units at a purchase price of 14 cents per FT unit for a total of $798,000. The results of the first closing were announced on Dec. 10, 2009. In addition to the 2.5 million FT units purchased by the MineralFields Group in the first closing, an additional insider of the corporation purchased less than 1 per cent of the FT units pursuant to the offering.

Each FT unit consists of one flow-through common share and one common share purchase warrant. Each warrant is exercisable into one common share at a price of 20 cents per common share for 12 months from the date of issuance and 25 cents per common share for the following 12 months, subject to earlier expiry in certain circumstances. The issued securities are restricted from resale for a period of four months from the date of issue.

First Canadian Securities, a division of Limited Market Dealer Inc., received an agency fee of $22,845 and was issued an option exercisable for 24 months from Dec. 8, 2009, to purchase up to 250,000 units of the corporation and an option for 24 months from Dec. 22, 2009, to purchase up to 159,921 units at an exercise price of 14 cents per unit. Each unit comprises one common share of the corporation and one common share purchase warrant exercisable into one common share of the corporation at a price of 20 cents per common share for 12 months from the date of issuance and 25 cents per common share for the following 12 months, subject to earlier expiry in certain circumstances. In addition, FCS received a due-diligence fee defrayed by the issue of 246,745 units with an equivalent value of $34,544. Finders' fees in the amount of $22,200 and finders' options for 24 months from Dec. 22, 2009, to purchase 158,571 units at an exercise price of 14 cents per unit were paid to arm's-length finders in connection with the total offering. Of the finders' fees, $5,250 was defrayed by the issue of 37,500 units.

The proceeds from the offering will be used for exploration on Kirrin's portfolio of rare earth element (REE) and uranium properties.

We seek Safe Harbor.