Mountain Lake arranges $5-million financingMountain Lake arranges $5-million financing
Ticker Symbol: C:MOA
Mountain Lake arranges $5-million financing
Mountain Lake Resources Inc (C:MOA)
Shares Issued 36,086,438
Last Close 10/12/2010
.91
Wednesday October 13 2010 - News Release
Mr. Gary Woods reports
MOUNTAIN LAKE ARRANGES BROKERED PRIVATE PLACEMENT FINANCING LED BY SALMAN PARTNERS
Mountain Lake Resources Inc has entered into an agreement with Salman Partners Inc. as lead agent for a private placement, on a best efforts basis, of up to 4,761,905 flow-through common shares of the company at a price of $1.05 per flow-through share for gross proceeds of up to $5-million.
The agents for the offering include Salman Partners Inc. as lead agent, and Bayfront Capital Partners Ltd. Mountain Lake has agreed to grant an overallotment option exercisable by the agents in whole or in part on or before the closing date to increase the size of the offering by up to an additional 952,381 flow-through shares (for up to an additional $1-million in gross proceeds). The agents will receive at closing a cash commission of 7 per cent of the gross proceeds raised, including any flow-through Shares sold upon exercise of the overallotment option.
The gross proceeds of the Offering will be used by Mountain Lake to fund exploration work on the Company's Valentine Lake, Glover Island and Little River projects, which are all located on the island of Newfoundland, Canada.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All of the securities issued pursuant to this Offering will have a hold period expiring four months after the closing date.