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| | Mon May 1, 2006
Sprott Buys 13% of New World
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| | Vancouver, BC: New World Resource Corp. (the "Company") announces that Sprott Asset Management Inc. ("Sprott") has acquired, as portfolio manager, 2 million units at $0.80 each on the closing of a private placement announced March 3, 2006.
Sprott now holds approximately 13% of the Company, with the right to increase its position by an additional 6%, upon the full exercise of share purchase warrants that formed part of the unit placement.
The financing realized gross proceeds of $1.6 million. Net proceeds will be used to fund the first phase of the Company's planned exploration program on its Lipeña high- grade gold and copper project in southwestern Bolivia and for working capital.
In consideration of its services as agent for the private placement, Pacific International Securities Inc. received a commission equal to 7% of the gross proceeds, in cash and units, and 180,000 compensation options.
All units and the compensation options are subject to a hold period that will expire on August 29, 2006.
Separately, the Company notes that warrants to purchase 1.5 million shares of the Company at a price of $1.00 per share, issued pursuant to a brokered private placement that closed on November 16, 2004, will expire on May 16, 2006.
About the Lipeña Project
The Lipeña project is located in the department of Potosí, a prolific historical mining province in south-west Bolivia, near the Argentine border. Lipeña is a high grade copper, gold and silver prospect that is hosted in a magmatic hydrothermal breccia system.
Between 1995 and 1997, a subsidiary of the former Battle Mountain Gold Company (collectively, "Battle Mountain") drilled a total of 12,690 meters in 44 drill holes (21 reverse circulation and 13 diamond drill holes) (see the Company's news release dated January 26, 2006). The Company has finished compiling all available Battle Mountain exploration data for entry into a GIS program to assist in designing the exploration program. A detailed geological map is currently being prepared and announcement of the commencement of an initial drill program to verify a selection of historical intercepts is expected shortly.
The Company has an option to acquire a 75% interest in a joint venture on the Lipeña project from Empresa Minera Unificada Sociedad Anomina ("EMUSA"), one of Bolivia's largest mining concerns.
About New World
New World Resource Corp. is a Canadian mining exploration company focused on building a strong, diversified project portfolio within the Americas.
NEW WORLD RESOURCE CORP.
John Lando, President
For information with respect to the Company or the contents of this news release, please contact John Lando or Don Flahiff at (604) 669-2701 or toll free at 1-800-663-0510, email at info@newworldresource.com, or visit the web site at www.newworldresource.com.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release. |
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| | You can view the Next News Releases item: Wed May 3, 2006, <b>Drilling Commences at Lipeña Project</b>
You can view the Previous News Releases item: Tue Mar 28, 2006, Exchange Accepts Lipeña Option
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