Vancouver, B.C., June 16, 2011. Serengeti Resources Inc. (SIR: TSX-V; 34S: FSE) announces a non-brokered private placement to raise gross proceeds of up to $1,054,000 through the sale of up to 3,400,000 flow-through units at a price of $0.31 per flow-through unit with an overallotment provision of an additional 15%. Each flow-through unit will consist of one flow-through common share and one-half of one non-flow-through share purchase warrant. Each whole warrant will be exercisable into one common share for a period of eighteen months from closing of the financing, at a price of $0.42 per share.
Serengeti has agreed to pay cash finder’s fees of 6%, in accordance with TSX Venture Exchange policies.
The private placement and finder’s fee will be subject to acceptance by the TSX Venture Exchange.
Proceeds will be used by Serengeti to fund further drilling and exploration work on its portfolio of British Columbia properties, including on its Kwanika copper - gold project and for general working capital purposes.
About Serengeti Resources Inc.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is currently advancing its Kwanika copper-gold project, and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia and has initiated exploration for gold-silver deposits in Mexico. Additional information on Serengeti’s projects can be found on the Company’s website at www.serengetiresources.com. Serengeti is well funded to advance its projects with a current working capital position of approximately $5.2 million, which includes $3.5million receivable from the B.C. government’s METC program. Serengeti has 46.9 million shares issued and outstanding and 52.6 million shares on a fully diluted basis.
This document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Investor Relations: Paradox Public Relations (tel) 514-341-0408 (toll free in North America) 1-866-460-0408
Serengeti Resources Inc., (tel) 604-605-1300 SIR: TSX.V 34S: FSE