Kent Exploration Announces Private Placement, Closes First Tranche.
26 January 2012
NEWS RELEASE KEX2012-02
KENT EXPLORATION ANNOUNCES PRIVATE PLACEMENT, CLOSES FIRST TRANCHE.
Kent Exploration Inc. KEX: TSX.V, (the “Company” or “Kent”) announces that, subject to approval by the TSX Venture Exchange (“TSX-V”), it is conducting a non-brokered private placement consisting of up to 12 million Units at $0.05 cents per Unit and has closed a first tranche of the placement for 1,286,000 Units for gross proceeds of $64,300.
Each unit will consist of one (1) common share and one (1) non-transferable common share purchase warrant. Each warrant is exercisable for a period of two (2) years from closing and will entitle the holder to purchase one additional common share in the capital stock of the Company at a price of $0.10 per common share. Shares subscribed for in the Private Placement are subject to a four (4) month and one day hold period.
The proceeds of the financing are to be used primarily for the Flagstaff Barite Project, and for general and corporate purposes and the Company’s New Zealand gold projects.
Finder Fees of $5,680 and 113,600 “B” Warrants were paid on the first tranche pursuant to the policies of the TSX-V. Due to poor market conditions during November and December, the Company has cancelled the prior non-brokered private placement announced November 23, 2011.
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Kent Exploration Inc. is a junior exploration company with a 100% interest in all its major projects, and is planning on building shareholder value through establishing cash flow from its Flagstaff Mountain, WA, barite mine. Any positive cash flow is to reduce dilution and fund exploration on its three major high grade gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand. Additional shareholder value has established been through its approximately 22% interest in Archean Star Resources Inc, (“Archean”) which is listed on the TSX Venture Exchange under the symbol ASP.
Archean’s wholly owned subsidiary, Archean Star Resources Australia, Pty, Ltd, (“ASRA”) has an Option Agreement, subject to a 75% back in right, to earn 100% of Teck Australia Pty, Ltd’s (“Teck”) current 80% interest in Chalice Gold Mines Limited’s Gnaweeda Gold Project in West Australia. High grade gold has been discovered at Gnaweeda.
The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents.
ON BEHALF OF THE BOARD "Graeme O'Neill"
Graeme O’Neill, President
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release