VANCOUVER, March 26, 2012 /CNW/ - Cliffmont Resources Ltd. (TSXV: CMO) is pleased to announce that further to its news release of March 01, 2012, it has closed its non-brokered private placement ("Private Placement") of 5,000,000 units ("Unit") at a price of $1.00 per Unit for gross proceeds of $5,000,000. Each Unit consists of one common share of the Company and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share at a price of $1.25 per share for 18 months after closing.
In connection with the Private Placement, the Company paid finders' fees of 6% cash and 6% warrants on a portion of this financing. The Company paid cash of $177,000 and issued 177,000 non-transferable finders' warrants to purchase 177,000 common shares, exercisable at $1.25 per share, for a period of 18 months from closing.
All securities issued pursuant to the Private Placement will be subject to a four month hold period expiring in July, 2012.
The net proceeds from this private placement will be used for the continued exploration of the San Luis Project and for general working capital purposes.
ON BEHALF OF THE BOARD
"Jeff Tindale"
Jeff Tindale, President and CEO
About Cliffmont
Cliffmont Resources is a publicly-listed (TSXV: CMO) Vancouver-based mineral exploration company focused on advancing and developing exploration projects in Colombia. Cliffmont is located in the Department of Huila, a prolific historical mining area in central Colombia and has 100% ownership in the San Luis Project, comprising a 2,623 hectare tenement. The San Luis project includes principal targets of gold-silver bearing quartz veins while exploring for mineralization in stockwork, hydrothermal breccias, and gold and gold-copper porphyry. The San Luis district is mining friendly and is supported with a comprehensive infrastructure network. Cliffmont has assembled a strong management team while implementing ongoing community and social initiatives.