Black Panther Closes Private Placement And Announces Additional Financing For Its Labrador (1506 Property) Work Program
West Vancouver, British Columbia – August 3, 2011 – Black Panther Mining Corp. (the “Company” or “Black Panther”) is pleased to announce that, further to its news release dated June 20, 2011, the Company has closed its non-brokered private placement (the “Private Placement”). The Company has raised $251,425 by the issuance of 2,957,942 non-flow through units (the “Units”) at a price of
.085 per Unit. Each Unit consists of one common share and one-half of a share purchase warrant, with each whole warrant entitling the holder to purchase an additional common share for a period of 24 months at an exercise price of
.10 in the first 12 months and
.15 thereafter. In connection with the Private Placement, finders’ fees were paid in the amount of $7,900 ($6,235 in cash and $1,665 through the issuance of 19,588 Units). All of the securities issued pursuant to this Private Placement are subject to a hold period expiring on December 3, 2011.
Concurrent with the closing of this Private Placement, Black Panther announces that, subject to regulatory approval, it intends to proceed with a further non-brokered private placement (the “Additional Private Placement”) to raise up to $510,000 by the issuance of up to 6,000,000 non-flow through units (the “Units”) at
.085 per Unit. The Additional Private Placement is being announced by the Company in order to include certain placees and investors that were not able to participate in the Private Placement that was just completed. Each Unit of the Additional Private Placement will consist of one common share and one-half of a share purchase warrant, with each whole warrant entitiling the holder to purchase an additional common share for a period of 24 months at an exercise price of
.11 in the first 12 months and
.15 thereafter. With respect to the Additional Private Placement, the Company may pay finders’ fees in the amount of 9% of the proceeds raised from the sale of the Units (payable in cash or in Units at a deemed price of
.085 per Unit) based on the number of Units purchased by subscribers introduced to the Company by such finders.
The Company intends to use the proceeds from these Private Placements for furthering the exploration of the Company’s Voisey’s Bay (copper, nickel, cobalt) property in Labrador (the “1506 Property Project”). The Company’s planned core drill program of up to 1,200 metres has been designed to test at least six significant VTEM (versatile time domain electromagnetic) geophysical anomalies. These VTEM geophysical anomalies were discovered as a result of Black Panther’s VTEM program on the 1506 Property that was completed in 2009.
Pursuant to the Company’s option agreement with Columbia Yukon Explorations Inc. (“Columbia Yukon”), Black Panther has the right to earn a 60% interest in the 1506 Property Project by completing $500,000 in exploration expenditures (of which approximately $200,000 has been expended to date). The 1506 Property consists of 60 map staked mineral claims covering 15 square km located approximately 90 km north of the Voisey’s Bay nickel discovery in the Nain area of Labrador. Direct access to the site is by helicopter from Nain. In the mid 1990’s, Columbia Yukon conducted a comprehensive first stage regional exploration program, which included lake sediment geochemistry, prospecting and geological reconnaissance, followed by a helicopter borne geophysical survey utilizing magnetic and electromagnetic methods done at 100 metre line spacing. Encouraged by the first stage program results, Columbia Yukon undertook a diamond drilling program to test the sulphide mineralized areas located in the northwest sector of the claim group. The primary focus of Columbia Yukon’s program was to obtain an idea of the Property’s overall nickel-copper potential by testing all of the near surface hillside target areas in a limited manner. Seven widely spaced shallow BQ holes were drilled between April 30 and May 17, 1996 for a combined total of 950 metres. All of the drill holes intersected magmatic sulphide mineralization. Black Panther’s core drilling program is scheduled to begin in September and is estimated at this time to cost between $500,000 and $700,000.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922-2030, Robert A. Young, Investor Relations, at 604-682-5123 or visit the Company’s website at www.blackpanthermining.com.