This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.
October 21, 2003 -- DRC Resources Corporation ("DRC Resources" or the "Company") (TSX: DRC) announced today that it has entered into an agreement with a syndicate of underwriters led by Orion Securities Inc. under which the underwriters have agreed to buy on a private placement basis 3,000,000 Common Shares from DRC Resources and sell to qualified investors at a price of CDN$7.00 per Common Share, representing an aggregate amount of issue of CDN$21,000,000.
In addition, the Company will grant the Underwriters an option, exercisable up to 24 hours prior to the Closing Date of the Offering, to purchase up to an additional 450,000 Common Shares (CDN$3,150,000) of the Offering at the issue price.
Closing of the placement is scheduled for November 6, 2003. The closing is subject to completion of standard documentation and requires that DRC Resources shall be a "qualifying issuer" under Multilateral Instrument 45-102 of the Canadian Securities Authorities before the Closing Date, so that the issued shares will be subject to a four month hold period.
The net proceeds from the Offering will be used to advance the development of the Afton copper-gold project, including infill drilling, the final feasibility study and for general working capital.
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.
The securities being offered have not, nor will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United Sates or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
DRC Resources Corporation is a publicly traded natural resource company with its head office in Vancouver and a field office in Kamloops, B.C. The main focus of DRC Resources is the exploration of the Afton Copper-Gold Project located in the Kamloops Mining Division.
For further information on DRC Resources and the Afton Project, please contact:
DRC Resources Corporation, 601 -- 595 Howe Street, Vancouver, B.C. V6C 2T5
Tel: 604-687-1629, Fax: 604-687-2845
Email: drcresources@uniserve.com Website: www.drcresources.com
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