TORONTO, Ontario, May 27, 2004 (PRIMEZONE) -- Bontan Corporation Inc. (OTCBB:BNTNF) is pleased to announce that it has completed the previously announced private placement to arms-length accredited investors for 8,909,571 Units at US$0.35 per Unit, each Unit included one common share and one common share purchase warrant. Each such warrant entitles its holder to acquire one common share of the company at a price of US$1.00 within twenty-four months of the date of issuance of the Unit.
The proceeds of about US$2.8 million net of agency fee will be used for acquiring equity participation and related investment in the natural resource sector including oil and gas development and exploration and for working capital.
The Company has already invested about US$1.9 million out of the net proceeds by way of loans to a non-affiliated Corporation for the purpose of acquiring indirect participation interest (IPI) of approx. 0.75% in phase one of an oil exploration program in Papua New Guinea. The loan is secured by a first charge on the IPI interest.
The Company through its wholly owned subsidiary has agreed to acquire the IPI share in full settlement of its loan on or before June 30, 2004
About Bontan Corporation Inc.
Bontan Corporation Inc. is a diversified natural resource Company seeking high returns with minimal risks. Bontan operates, backs and invests in major exploitation and an exploration plays run and organized by highly regarded geologists, geophysicists and executives.
Through its wholly owned subsidiaries, Bontan seeks highly visible opportunities in countries around the globe with a history of natural resource production that offers exciting and attractive propositions. The company will seek to minimize risk by bringing in either joint venture, carried or working interest partners, depending on the size and scale of the project.
For further information, please contact Kam Shah, CFO at 416-860-0174.
For Investor Relations, contact Rob Kennedy at Current Capital Corp. at 416-860-0211 or visit their website at www.currentcapital.com
No regulatory authority has approved nor disapproved the content of this release.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plans", "confident that", "believe", "expect", or "intend to", and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements.