2012 exploration - $25 million
Exploration and development of Gold deposits - Kirkland Lake Gold camp
Message: Closes $18 Million Financing
| March 4, 2009 |
| Queenston Closes $18 Million Financing |
| TORONTO, ONTARIO--(Marketwire - March 4, 2009) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:Q... ("the Company") is pleased to announce that it has completed on schedule the private placement financing announced on February 20, 2009. The financing was fully subscribed and as a result the Company raised $18,000,175. The financing was led by Primary Capital Inc. and including Dundee Securities Corporation. National Bank Financial also participated in the financing as a sub-placement agent (collectively the "Agents"). Gross proceeds from the sale of 4,148,570 units priced at $3.85 per unit ("Hard Dollar Units") and 460,950 flow-through shares ("Flow Through Shares") priced at $4.40 per share amounted to $18,000,175. Each Hard Dollar Unit consisted of one common share and one half warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $5.00 for a period of 12 months. The Company paid the Agents a cash commission equal to 6% of the gross proceeds and issued 276,571 broker warrants to the Agents to acquire 276,571 Hard Dollar Units exercisable at $3.83 per share within 12 months of today's date. As a result of the financing the Company's cash resources has increased to approximately $32 million. The proceeds from the financing will be used to accelerate the Company's gold projects located in the Kirkland Lake gold camp. The Company's strategy is to return to producer status through the advancement of four 100% owned gold deposits in Gauthier Township (Upper Beaver, McBean, Anoki and Upper Canada) and through five joint ventures with Kirkland Lake Gold Inc. adjacent to the Macassa mine in Teck Township. In addition to the development strategy, the Company will increase its aggressive exploration program in the camp where recent deep drilling programs have intersected high-grade gold mineralization on the 100% owned Upper Beaver property (30.3 g/t Au with 1.0% Cu over 20.8 m, see news release dated December 16, 2008), on the 100% owned McBean property (15.4 g/t Au over 5.2 m, see news release dated January 15, 2009) and recently, on the 100% owned AK property (31.8 g/t Au over 2.3 m, see news release dated February 18, 2009). Queenston's Cautionary Note Regarding NI 43-101 and Forward Looking Statements The disclosure in this news release has been reviewed, verified and compiled by its President, Charles E. Page, P. Geo. a "qualified person" for the purposes of NI 43-101. |
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