Mountain Lake Resources Inc V.MOA

$5 Million for GOLD

[Cousin_Gert]

Agressive program coming up.... $5 million to develope the Nfld Gold Properties...a great price too at $1.05!!! which is well over 20% above market price...well done MOA...
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Mountain Lake closes $5.16-million private placement

2010-10-28 14:43 ET - News Release

Mr. Gary Woods reports

MOUNTAIN LAKE COMPLETES BROKERED PRIVATE PLACEMENT FINANCING THROUGH SALMAN PARTNERS; $5.16 MILLION RAISED FOR THE EXPLORATION AND DEVELOPMENT OF THE COMPANY'S VALENTINE LAKE, GLOVER ISLAND AND LITTLE RIVER GOLD PROJECTS IN NEWFOUNDLAND, CANADA

Mountain Lake Resources Inc has completed the brokered private placement (the "Offering") through Salman Partners Inc. ("Salman") announced October 13, 2010. Salman placed a total of 4,917,260 "flow-through" common shares (the "Flow-Through Shares") of the Company at a price of $1.05 per Flow-Through Share for gross proceeds of up to $5,163,123.

Salman has received a cash commission of 7% of the gross proceeds raised.

The gross proceeds of the Offering will be used by Mountain Lake to fund exploration and development work on the Company's Valentine Lake, Glover Island and Little River projects, which are all located on the island of Newfoundland, Canada.

All securities issued in connection with this offering will be subject to a four-month hold period in accordance with securities regulation, until March 1, 2011.
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C.G.

[Cousin_Gert]

Hey....also noticed no warrants attached!!!....this is a very nice deal...time to get moving...C.G.

[theCurse]

CG,I want this thing moving forward as the next guy...and we've both been around here forever but I know that you know that they are flow through shares and are always at a premium to the market price.  I don't think there are ever warrants with a flow through share offering.Anyway, nice it's down - perhaps now we can start moving again...maybe with some help by salmontC

[marymart]

Well put and clarifies the 'noise'

[Cousin_Gert]

My old buddy TC...Sorry but I believe that you are beginning to get old and forgetful on how these things usually work. FT's more often than not do have warrants attached(see below). As far as always getting a premium, this also is not always the case(see below)...it is company by company depending on their strength. A 20% premium can make FT's for a company quite attractive. MOA

[theCurse]

Not too interested in 15 cent financing example. Maybe there are warrants sometimes but the big incentive is the immediate and guaranteed tax relief to the buyers of these flow through financings...they are issued at a premium.. And the company is potentially giving up tax relief (if they were to become income producing) to the buyers of these shares. please re-read my previous post