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HORNBY BAY EXPLORATION LIMITED
December 04, 2003 - Symbol: YHB (TSXV) HORNBY BAY PROPOSES PRIVATE PLACEMENT Hornby Bay Exploration Limited (TSX Venture: YHB) announces that it has completed the first tranche of a previously announced non-brokered private placement of up to $5,000,000. The first tranche raised gross proceeds of $2,075,500 through the issuance of 2,075,500 special warrants. Each special warrant is convertible into units at a price (the "Conversion Price") equal to the lesser of $0.20 or the average trading price of the common shares of the Company for the sixty days after the date of issuance of the special warrants. Each unit is comprised of one flow through share and one flow through share purchase warrant. Each warrant entitles the holder to acquire a flow through share of the Company for a period of two years at an exercise price equal to the Conversion Price plus $0.05 for the first year and the Conversion Price plus $0.10 for the second year. In addition to the Special Warrants the investors will receive a pro rata share in a 1% Net Smelter Royalty (to a maximum of $10,000,000) over the Company's mineral properties.The proceeds of the private placement will be used for exploration work on the Company's mineral properties located in Nunavut which cover 225,000 hectares. A $2,250,000 exploration program consisting of airborne and ground surveys to locate diamond, base metal and uranium targets has been initiated on the Company's properties. In connection with the private placement the Company has issued finder's fees of 1,437,000 common shares to various parties that introduced subscribers to the Company.
For further information contact:
James. M. Brady,
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