October 3, 2008
Darnley Bay Resources Limited
Darnley Bay Resources Limited (TSX VENTURE: DBL) has closed the first tranche of $150,000 (600,000 units) as part of a $1 million private offering, with each $0.25 unit consisting of one common share and one common share purchase warrant.
Each common share purchase warrant is exercisable for two years from the closing date, at an exercise price of $0.40/share. If at any time after October 15, 2008, the closing price of the common shares of the company on the TSX Venture Exchange is greater than $0.80 for 20 or more consecutive trading days, DBR can give notice to the holders of the warrants that the expiry date has been accelerated and that the warrants will expire on the 30th calendar day following the date such notice is mailed.
S. Reford Holdings Ltd., a company controlled by Stephen Reford, President & CEO of the company, subscribed for 200,000 units, bringing his post-closing percentage to 0.9% of the shares outstanding.
The proceeds will be used for working capital.
The Company was formed in 1993 to explore and develop an area of geophysical significance in the Northwest Territories of Canada. Initial base metal exploration fortuitously resulted in the discovery of diamonds, indicating that the area is host to both metallic and non-metallic mineral deposit interests. The Company's objectives are to secure and maintain successful financing partnerships to continue exploration for both base metals and diamonds that will result in the development of a profitable mining venture.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.
Contacts: Darnley Bay Resources Limited Stephen Reford President & CEO (416) 862-7885 (416) 862-7889 (FAX) Email: [email protected] Website: www.darnleybay.com
SOURCE: Darnley Bay Resources Limited