NEWS
Mountain Lake Arranges Private Placement Financing with Sprott Asset Management
Proceeds of $2,015,000 to Be Raised to Continue the Company"s Exploration and Development Work on Its Gold Projects in Newfoundland
HALIFAX, Nova Scotia, Aug 31, 2011 (BUSINESS WIRE) --
Mountain Lake Resources Inc. (TSX-V: MOA) (Pink Sheets: MLKRF) ("Mountain Lake" or the "Company") is pleased to report that it has arranged a private placement with Sprott Asset Management LP of 3,100,000 units (collectively, the "Units") at
.65 per Unit to raise $2,015,000 in gross proceeds. Each Unit will consist of one common share and one-half of a transferable share purchase warrant (collectively, the "Warrants"). Each whole Warrant will entitle the holder to purchase one additional common share of the Company at a price of
.80 per share for a period of two years from the closing date.
Completion of this financing is subject to TSX Venture Exchange"s acceptance. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.
The proceeds of this financing will be used to fund the Company"s exploration and development work on its projects in Newfoundland, Canada, and for general working capital purposes.
"The investment backing of Sprott Asset Management and other institutional investors has enabled Mountain Lake to maintain a path to growth over the years, and we are particularly pleased to receive another round of financing from a group of Sprott managed funds in the midst of this current period of market volatility," said President and CEO of Mountain Lake Gary Woods. "It is an endorsement of the potential of our projects and the progress being made on our Valentine Lake Joint Venture. The vision of leaders in the investment community is as important as the vision of any geotechnical team to insure a project matures from exploration through development to production."
About Mountain Lake Resources Inc.
Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior exploration company, whose corporate strategy is to build shareholder value through the exploration and development of economically viable mineral properties all located on the pro-mining island of Newfoundland. Mountain Lake"s current projects include: a 50% interest in the Valentine Lake gold property (drilling in progress) under the joint venture with Marathon Gold Corp.; a 100% interest in the Glover Island gold exploration property (drilling in progress); an option to earn a 100% interest in the Little River gold-antimony exploration property; a 100% interest in the Bobby"s Pond base metals property. For more information visit:
www.mountain-lake.com
For corporate, media, or investor inquiries, please contact:
ON BEHALF OF THE BOARD OF DIRECTORS
s/"Gary Woods"
President & CEO