|Mon Oct 23, 2006|
Sultan Minerals Inc. Completes Private Placement Financing
|Sultan Minerals Inc. (SUL-TSX Venture) ("Sultan") is pleased to announce that it has completed a non-brokered private placement of 1,110,000 units (the "FT Units") at a price of $0.18 per FT Unit for gross proceeds of up to $199,800. Each FT Unit is comprised of one (1) flow-through common share and one-half of one non-flow-through ("NFT")_share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional NFT common share of Sultan at an exercise price of $0.25 per share until October 18, 2007.|
Additionally, Sultan is pleased to announce that it has completed a non-brokered private placement of up to 1,812,725 units (the "Units") at a price of $0.16 per Unit, for gross proceeds of up to $290,036. Each Unit is comprised of one (1) NFT common share in the capital of Sultan, and one-half of one NFT share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional NFT common share of Sultan at an exercise price of $0.25 per share until October 18, 2008.
Sultan paid a cash finder's fee equal to eight percent (8%) of the gross proceeds received by it from the sale of FT Units and Units arranged by an arm's length finder (the "Finder"), and also granted to such Finder non-transferable warrants (the "Finder's Warrants") to purchase that number of NFT common shares of Sultan (the "Finder's Warrant Shares") as is equal to ten percent (10%) of the aggregate number of FT Units and Units sales to made to eligible investors which were arranged by such Finder. Each Finder's Warrant issued in relation to the sale of FT Units is exercisable to acquire a Finder's Warrant Share, at a price of $0.25 per share until October 18, 2007, and each Finder's Warrant issued in relation to the sale of Units is exercisable to acquire a Finder's Warrant Share, at a price of $0.25 per share until October 18, 2008.
All shares, warrants and any shares issued upon exercise of the warrants with respect to the above private placements are subject to a hold period and may not be traded until February 19, 2007.
Proceeds from the non-brokered private placement will be used to fund Sultan's work programs in British Columbia and for general working capital.
For further information on Sultan's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Tel: (604) 687-4622 Fax: (604) 687-4212
T. J. Malcolm Powell -- Email: IR@langmining.com
No regulatory authority has approved or disapproved the information contained in this news release.
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