Roxmark completes another $1 million financing with MineralFields Groupadmin
Roxmark Mines Limited announced the completion of a $1 million non-brokered private placement financing with MineralFields Group of Toronto, a leading mining fund. This is the third Roxmark financing with MineralFields.
Gross proceeds of $1 million were received through the issue of 14,285,712 flow-through units at a price of $0.07 per unit. Each unit consists of one common share and one common share purchase warrant of the Company issued on a “flow-through” basis. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.15 until December 8, 2009 and at $0.20 thereafter until December 8, 2010. The warrants are subject to an accelerated expiry date under certain conditions. The securities issued pursuant to the financing are subject to a four-month hold period until April 9, 2009.
Completion of the transaction will increase Roxmark’s working capital to more than $2,000,000-an amount sufficient to fund the planned 2009 exploration program.
Roxmark paid a cash finder’s fee to Limited Market Dealer Inc. (“LMD”) in the amount of 5% of the aggregate proceeds raised in the offering and granted to LMD 1,428,571 non-transferable finder’s options, each exercisable at $0.07 per option, to acquire a unit of securities of the Company for a period of two years from the date of issuance comprised of one common share and one common share purchase warrant. Each such common share purchase will be exercisable on the same terms as the warrants issued under the offering.
Proceeds of the financing will be used to fund exploration and development programs to advance Roxmark’s Northern Empire Gold Mine and the Nortoba-Tyson gold and molybdenum property in the Beardmore mining camp in Northern Ontario. The Northern Empire mine was operated successfully by Newmont Mines from 1934 to 1941. It was serviced by a shaft to a depth of 2,460 feet and produced 149,000 ounces of gold from 426,000 tons of ore at a recovered grade of 0.35 oz Au/t. The on-site 200TPD mill (expandable to 500TPD) was built in 1982 and upgraded and permitted by Roxmark. It processed gold and molybdenum ores in 2005 and 2006, respectively.
The Northern Empire Mine is located in the Town of Beardmore, approximately 200 km northeast of Thunder Bay, and serviced by the Trans-Canada Highway. Accessibility of all Roxmark properties, including the Leitch Gold Mine and the Nortoba-Tyson property is a strong competitive advantage.
Certain Roxmark holdings in the Geraldton Camp are under option to Premier Gold Mines Limited (TSX-PG) which has incurred more than $6.1 million in exploration expenditures since September 2007.