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Delrand Resources Limited - Delrand Announces Closing Of Private Placement Of Common Shares And Convertible Debenture

Release Date: 18/01/2016 16:44:00      Code(s): DRN     
Delrand Resources Limited
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: DRN ISIN Number: CA2472672062
(?Delrand? or the "Company")

DELRAND ANNOUNCES CLOSING OF PRIVATE PLACEMENT OF COMMON SHARES AND
CONVERTIBLE DEBENTURE

Toronto, Ontario ? January 15, 2016 ? Delrand Resources Limited (the ?Company?) (TSX-V: DRN.H;
JSE-DRN) is pleased to announce that it has closed its previously announced non-brokered
private placement of an aggregate of 9,000,000 common shares in the capital of the Company
(the ?Common Shares?) at a price of $0.08 per Common Share for gross proceeds of
CDN$720,000 (the ?Offering?). The Common Shares issued in connection with the completion of
the Offering will be subject to a statutory hold period until May 16, 2016, in accordance with
applicable securities legislation.

The Company also reports that, further to its press release of December 18, 2015, it has closed
the issuance of the CDN$1,300,000 convertible debenture to its largest creditor. The debenture
has a maturity date of June 18, 2018, and interest on the principal outstanding from time to time
accrues at an interest rate of 2.5% per annum. Reference is made to the Company?s December
18, 2015, press release for additional information with respect to this debenture.

Arnold Kondrat, an officer and director of the Company, acquired 7,100,000 Common Shares of
the Company in connection with the Offering. Following completion of the Offering, Mr. Kondrat
will own, directly and indirectly, an aggregate of 11,886,567 Common Shares, representing
approximately 38.6% of the issued and outstanding Common Shares of the Company. If Mr.
Kondrat were to exercise all of his respective convertible securities he would own, directly and
indirectly, 17,086,567 Common Shares, representing approximately 47.5%, of the Company?s
then outstanding Common Shares, on a partially diluted basis.

Mr. Kondrat has acquired the Common Shares for investment purposes and may, depending on
market and other conditions, increase or decrease his beneficial ownership, control or direction
over the Common Shares, or other securities of the Company, through market transactions,
private agreements, treasury issuances, exercise of convertible securities or otherwise. For further
details relating to the acquisition, please see the early warning report, a copy which is available
on SEDAR.

The Offering constitutes a related party transaction within the meaning of TSX Venture Exchange
Policy 5.9 and Multilateral Instrument 61-101 (?MI 61-101?) as an insider of the Company
subscribed for 7,100,000 Common Shares. The Company is relying on the exemptions from the
valuation and minority shareholder approval requirements of MI 61-101 contained in sections
5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Common Shares being issued to
insiders in connection with the Offering does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61-101. The Company did not file a material
change report in respect of the related party transaction at least 21 days before the closing of
the Offering, which the Company deems reasonable in the circumstances so as to be able to
avail itself of potential financing opportunities and complete the Offering in an expeditious
manner.

For further information, please contact:

Arnold T. Kondrat, CEO, (416) 366-2221 or 1-800-714-7938.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this release and has neither
approved nor disapproved of the contents of this press release.

This news release contains certain ?forward-looking information? within the meaning of
applicable securities law. Forward looking information is frequently characterized by words such
as ?plan?, ?expect?, ?project?, ?intend?, ?believe?, ?anticipate?, ?estimate?, ?may?, ?will?,
?would?, ?potential?, ?proposed? and other similar words, or statements that certain events or
conditions ?may? or ?will? occur. These statements are only predictions. Forward-looking
information is based on the opinions and estimates of management at the date the information
is provided, and is subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those projected in the forward-looking
information. For a description of the risks and uncertainties facing the Company and its business
and affairs, readers should refer to the Company?s Management?s Discussion and Analysis. The
Company undertakes no obligation to update forward-looking information if circumstances or
management?s estimates or opinions should change, unless required by law. The reader is
cautioned not to place undue reliance on forward-looking information.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure
to comply with this restriction may constitute a violation of U.S. Securities laws.

18 January 2016

Sponsor
Arbor Capital Sponsors Proprietary Limited

Date: 18/01/2016 04:44:00 Supplied by www.sharenet.co.za                     
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