Houston Lake Mining Announces Closing of $500,000 Flow-Through Financing
SUDBURY, Ontario, Dec 23, 2009 (BUSINESS WIRE) -- Houston Lake Mining Inc. (TSX.V: HLM, the "Company") today reported that the Company has closed its previously announced non-brokered private placement offering of 2,000,000 units ("Units") of the Company, for total gross proceeds of $500,000. Each Unit consists of one (1) Common Share of the Company (issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (each a "Flow-Through Share") and one-half of one (1/2) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Company at an exercise price of
.30 for the first 12 months from closing and at an exercise price of
.35 for a further 12 month period (the "Offering")). "With the closing of this financing Houston Lake is well positioned to aggressively explore its flagship gold project at West Cedartree," stated E. Grayme Anthony, President and CEO. "We commenced a 4,000 metre drill program earlier this month on the Dubenski property. The aim of the drill program is to expand the current gold resources, test the Western extension of the gold zone and probe its continuation at depth. We very much look forward to revealing the great potential that exists along the Dubenski Mineralized Zone." All of the Flow-Through Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. Proceeds from the Offering will be used to advance Houston Lake's 100% owned and 100% optioned gold properties located near Kenora, Ontario. In connection with the Offering, the Company issued a finder's fee of $40,000 (8% of the gross proceeds of the Offering) and 160,000 finder options (8% of the total number of Units sold under the Offering) to Strand Securities Corporation of Vancouver, B.C. Each finder option is exercisable at an exercise price of
.25 into one Common Share and one-half of one Warrant for a period of two years from closing. About Houston Lake Mining Inc. Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 39,957,638 common shares issued and outstanding exclusive of the announced financing. For additional information, please visit us at www.houstonlakemining.com. Forward-looking Statements Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com. www.houstonlakemining.com SOURCE: Houston Lake Mining Inc. Houston Lake Mining Inc. E. Grayme Anthony, P.Geo., MBA, 705-897-7622 President and CEO Fax: 705-897-7618 ganthony@vianet.on.ca or In Canada: Linx Partners Ltd. Wanda Cutler, 416-603-4646 or In United States: ICS George Duggan, 818-542-6880 Copyright Business Wire 2009 |