/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMENATION IN THE UNITED STATES/
TORONTO, April 16 /CNW/ - Cline Mining Corporation (TSX: CMK) ("Cline" or the "Company") is pleased to announce that it has closed the previously announced bought deal private placement financing (the "Offering") of 30,500,000 common shares of the Company at a price of CDN$1.48 per share, for aggregate gross proceeds of CDN$45,140,000. The aggregate number of common shares issued included 7,000,000 common shares issued pursuant to the full exercise of the underwriters option granted to the underwriters in connection with the Offering.
The syndicate of underwriters was co-led by Macquarie Capital Markets Canada Ltd. and PowerOne Capital Markets Limited and included Jennings Capital Inc., Cormark Securities Inc. and Salman Partners Inc.
The net proceeds from the Offering will be used to fund continued development of the New Elk Coal Mine and debt servicing costs and for general working capital purposes.
THE COMMON SHARES WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
About Cline Mining: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with resources identified by NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.
CLINE MINING CORPORATION
Ken Bates, President and Chief Executive Officer
This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including information relating to the use of proceeds from the Offering, the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of financings. The timing of drilling and work recommended by the NI 43-101 Technical Report is based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2009 financial year end, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.
Toronto Office: TD Canada Trust Tower, 161 Bay Street, 27th Floor, Toronto, ON M5J 2S1
Vancouver Office: Suite 2950 - 650 West Georgia Street, Vancouver, BC V6B 4N8
SOURCE Cline Mining Corporation
For further information: For further information: Ken Bates, President and CEO; Ernest Cleave, Vice-President and CFO, Office: (416) 572-2002, Email: firstname.lastname@example.org, Website: www.clinemining.com