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TORONTO, June 7, 2011 /CNW/ - Cline Mining Corporation ("Cline Mining" or the "Company") (TSX:CMK) is pleased to announce the closing of its previously announced short form prospectus offering of 31,372,000 common shares (the "Common Shares") at a price of $2.75 per Common Share for aggregate gross proceeds of $86,273,000 (which included the exercise of the over-allotment option by the underwriters in full) (the "Offering"). A syndicate of underwriters, led by TD Securities Inc. and including GMP Securities L.P., Jennings Capital Inc., Cormark Securities Inc. and M Partners Inc., acted as underwriters for the Offering.
Net proceeds of the offering will be used to complete the development of the New Elk coal mine which includes reinstalling the steel rail-spur and funding working capital.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States. The common shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, except pursuant to an exemption from the registration requirements of that Act and applicable state securities laws.
About Cline: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.
CLINE MINING CORPORATION
Ken Bates, President and Chief Executive Officer
Forward-Looking Information
This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including without limitation, those regarding the closing of the offering, the use of proceeds from the offering, the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of financings. The timing of drilling and work recommended by the NI 43-101 Technical Reports are based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2010 financial year end, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.
For further information:
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