Advanced Explorations Inc. Closes First Tranche of Flow-Through Financing for $1,400,000 with MineralFields Group



    TORONTO, Aug. 13 /CNW/ - Advanced Explorations Inc. (the "Company" or
"AEI") is pleased to announce that it has closed the first tranche of its
previously announced flow-through financing of up to $1,800,000 (press
released August 10th, 2009) for gross proceeds of $1,400,000. The
MineralFields Group has taken a lead role in assisting the Company in raising
capital by private placement offering to accredited investors. A total of
7,777,775 flow-through units ("Units") at $0.18 per Unit (the "Offering") have
been issued in connection with this financing. Each Unit consists of one
common Flow-through share and one non-transferable, non-flow-through common
share purchase warrant (the "Warrants"). The holder of Warrants shall be
entitled to convert each whole Warrant to a common share of the Company at an
exercise price of $0.25 for 12 months following the closing of the Offering
("Closing"). All warrants shall expire one (1) year after Closing.
    John Gingerich, President & CEO of AEI commented:

    
    "We are very pleased to be entering into this relationship with
    MineralFields Group. This is an important milestone in the growth of
    Advanced Explorations Inc. and we look forward to working with
    MineralFields Group as we develop our holdings in the Nunavut Territory."
    

    In connection with this closing, the Company will pay Finder's Fees
totaling $84,000 in cash and 388,889 in compensation options. The options will
have a strike price of $0.18 and a one (1) year term.
    All shares issued as part of the Units and pursuant to the exercise of
the Warrants and compensation options are subject to a hold period expiring
December 14, 2009.
    The gross proceeds raised from the flow-through funds will be used for
exploration expenditures in the Company's Nunavut Roche Bay Magnetite Project,
which will constitute Canadian exploration expenses (as defined in the Income
Tax Act) and will be renounced for the 2009 taxation year.

    ON BEHALF OF THE BOARD

    John Gingerich, President & CEO

    
    About Advanced Explorations Inc.
    --------------------------------
    
    Advanced Explorations Inc., based in Toronto, Ontario, is a resource
development company focused on developing high quality iron ore opportunities.
With the option to earn a 100% interest in the Roche Bay Magnetite Project
located on the Melville Peninsula in Nunavut, Canada, AEI plans to produce
high quality granulated pig iron (nuggets) from the 357 million tonnes
inferred resource of the project's C-Zone. In the spring of 2009, AEI
announced a preliminary economic assessment for the project indicating a
potential US $2.76 billion net present value, a minimum of 50 years mine life
and a return on investment between three and five years. Led by an experienced
management team with technical, exploration and mining expertise the company
has the capabilities to rapidly advance the Roche Bay Project and explore
other local and global opportunities. Shares of the company trade at the TSX
Venture Exchange (AXI) and at the Frankfurt Stock Exchange (AE6). For more
information please visit www.advanced-exploration.com.

    
    About MineralFields, Pathway and First Canadian Securities(R)
    -------------------------------------------------------------
    
    MineralFields Group (a division of Pathway Asset Management), based in
Toronto and Vancouver, is a mining fund with significant assets under
administration that offers its tax-advantaged super flow-through limited
partnerships to investors throughout Canada as well as hard-dollar resource
limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds (including the Pathway Multi Series Funds
Inc. corporate-class mutual fund series). Information about MineralFields
Group is available at www.mineralfields.com. First Canadian Securities(R) is
active in leading resource financings (both flow-through and hard dollar PIPE
financings) on competitive, effective and service-friendly terms, and offers
investment banking, mergers and acquisitions, and mining industry consulting,
services to resource companies. MineralFields and Pathway have financed
several hundred mining and oil and gas exploration companies to date through
First Canadian Securities (R).

    
    NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
    THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE)
    ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

    This news release also includes forward-looking statements that involve a
number of risks and uncertainties. The information reflects numerous
assumptions as to industry performance, general business and economic
conditions, regulatory and legal requirements, taxes and other matters, many
of which are beyond the control of the company. Similarly, this information
assumes certain future business decisions that are subject to change. There
can be no assurance that the results predicted here will be realized. Actual
results may vary from those represented, and those variations may be material.
    This news release does not constitute an offer to sell or a solicitation
of an offer to sell any securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.





For further information:

For further information: (416) 203-0057 x226

Organization Profile

ADVANCED EXPLORATIONS INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890