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Kinbauri Gold Corp.: Kinbauri Announces Proposed Closing of Private Placement

^{Published on 2009-05-21 08:17:09, Last Modified on 2009-11-02 12:05:17 - Market Wire}
 

OTTAWA, ONTARIO--(Marketwire - May 21, 2009) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) announces that further to its press release dated May 14, 2009, it intends to close its previously announced private placement transaction on May 22, 2009. Kinbauri intends to issue up to 6,000,000 Units at a price of $0.50 per Unit for gross proceeds of $3,000,000. Each Unit will consist of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.70 for a period of 12 months from the date of issuance. The securities will be subject to a four month hold period from the date of the closing. Kinbauri will pay finder's fees to parties that referred subscribers to the Company, consisting of 6% of the funds raised and compensation warrants equal to 6% of the Units purchased. Each compensation warrant entitles the holder to acquire one Unit at a price $0.50 per Unit for a period of up to 12 months from the date of issuance. The proceeds of this financing will be used for general working capital purposes.

About Kinbauri:

Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of precious metal prospects in Spain, Nevada and Canada. Its immediate focus is to begin operations at its El Valle/Carles property in Asturias, northwestern Spain in 2010. It currently has 53,243,051 common shares issued and outstanding.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

VISIT:

Kinbauri Gold's Hub at [ http://www.agoracom.com/IR/kinbauri ] where investors can post questions and receive answers or review questions and answers already posted by other investors. Kinbauri Web-Site: [ www.kinbauri-gold.com ]

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.