TIMMINS, ON, Dec. 21, 2012 /CNW/ - Moneta Porcupine Mines Inc. (TSX:ME) (OTC:MPUCF) (XETRA:MOP) (the
"Company") announces the completion of its previously announced bought deal
offering of 15,392,077 flow-through common shares (Flow-Through Shares)
at $0.35 and 10,307,885 common shares at $0.26 per share, for aggregate
gross proceeds of $8,067,277 (the "Offering").
Ian C. Peres, President and CEO of Moneta commented, "We are pleased to
announce the closing of this significant financing and we would like to
thank the underwriters who sponsored the transaction for their positive
endorsement of the progress that Moneta has made to date. The proceeds
of this financing, in tandem with our current cash position, results in
Moneta being fully funded for the 2013 exploration program to advance
our flagship Golden Highway Project."
The Offering was conducted on a bought deal private placement basis by
Haywood Securities Inc. and a syndicate of underwriters, including
Stifel Nicolaus Canada Inc., Cormark Securities Inc., and Paradigm
Capital Inc. (collectively, the "Underwriters"). A cash commission of
$281,953 was paid to the Underwriters in connection with the Offering
and compensation warrants were issued to the Underwriters entitling
them to purchase up to 1,079,998 common shares of the Company at a
price of $0.28 per common share until June 21, 2014.
The proceeds received by the Company from the sale of the Flow-Through
Shares will be used to incur Canadian exploration expenditures that are
"flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) primarily on the Company's Golden Highway project, which will
be renounced to the subscribers with an effective date no later than
December 31, 2012, in the aggregate amount of not less than the total
amount of the gross proceeds raised from the issue of Flow-Through
Shares. The balance of the net proceeds of the Offering will be used
for working capital and general corporate purposes. The shares issued
in connection with the Offering are subject to a four-month hold
period, which expires on April 21, 2013.
Moneta holds a 100% interest in 5 core gold projects strategically
located along the Destor Porcupine Fault Zone in the world class
Timmins Camp with over 85 million ounces of past gold production.
Moneta's land position is one of the largest after three gold producers
including the highly prospective Golden Highway Project. The Golden
Highway Project covers 12 kilometers of a highly prospective
volcanic/sedimentary belt along the Destor Porcupine Fault Zone and
currently hosts a NI 43-101 resource estimate of 1,091,000 ounces
indicated (31.1 Mt at 1.09 g/t Au) plus 3,204,000 ounces inferred (83.3 Mt at 1.20 g/t Au), clustered within
four kilometres. The Golden Highway Project hosts exceptional
infrastructure including paved highway access, water, electricity,
skilled labor force, and nearby mills.
Moneta's public documents may be accessed at www.sedar.com. For further information on Moneta, please visit our website at www.monetaporcupine.com or email us at firstname.lastname@example.org.
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Since forward-looking statements address future events
and conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements.
SOURCE: Moneta Porcupine Mines Inc.
For further information:
Ian C. Peres, President & CEO