Mountain Lake Resources Inc V.MOA

Mountain Lake arranges $5-million financing

[Ridgeback]

Mountain 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.

[MrBigger]

So over 41 million shares out after this. Not such a tight float anymore.

[brianjames]

Not worried about the additional shares from the PP here....These people aren't paying a premium at $1.05 hoping that this stock gets to $1.20 or $1.25.Getting in at that price only means to me that someone somewhere is thinking $2.00 a share, cause they simply would not get in for a meager little 25% increase in stock price.I'm thinking that alot more is known behind the scenes than what

[Cousin_Gert]

It says...."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 in Canada." So all $5MM is going into developing MOA's Nfld properties!!...and likely VL will get most of this although the last Little River Gold

[truck8256]

I'm not a fan of stock price dilution through PP's but in this case find it's acceptable . They have the ball rolling and the quicker they can drill and increase the proven and the probable reserves the quicker MOA will be noticed."Build it and they will come" It's a no brainer.

[TheRock07]

This is a good financing  as it will enable drilling and exploration to proceed at a much faster pace.It is above the current share price and has no warrants, so dilution is minimized.It may also explain what many of us felt were small constraints on the upward movement of the share price..........which, if so, may enable the share price to move upwards unconstrained.Drilling proceeding on

[dshmd50]

https://www.mountain-lake.com/StockInfo.html Salman Partners as the 'lead partner' and with its mining industry expert(s) may help disseminate/spread the Mountain Lake story to retail investors going forward - very impressive financing and an excellent move by Leadership at a most propitious moment in MOA's corporate history.....IMO. Best of luck, DSH

[theCurse]

Could have some short term pressure if any of these shares are going to present holders. I think a previous poster was a bit confused with the "1.05" pricing and not just looking for "1.25". A bit of background on flow throw shares..... Here's how they work. Resource companies typically have huge upfrontexploration costs and little or no revenue. That means they don't

[TheRock07]

Yep.They may sell their current paper in order to raise cash to participate in the flow-thru PP........perhaps what we have seeing from those NS houses all along.MOA management are usually very efficient at closing a PP, so this shoundnt take long..