Proceeds to be used to advance Constancia Cu-Mo-Ag-Au Project
Shares Issued and Outstanding: 53,522,913
TORONTO, ON, and LIMA, Peru, July 10 /CNW/ - Norsemont Mining Inc. (the
"Company") (TSX and BVL: NOM) today announced that the Company has closed a
non-brokered private placement of 3,000,200 Units at a price of C$4.00 per
Unit, raising proceeds of C$12,000,800. Each Unit consists of one common share
and one-half of one common-share purchase warrant. Each whole common-share
purchase warrant entitles the holder, on exercise, to acquire one additional
common share of the Company at an exercise price of C$4.50 per share at any
time until the close of business on the day which is two years from the date
of issuance of the warrant. The securities issued under the private placement
are subject to a four month hold period.
The proceeds from the private placement will be used to purchase surface
rights at the Constancia Project, to fund an expanded Cu-Mo-Ag-Au exploration
program at the Constancia Project and for general working capital purposes.
The securities sold have not, nor will they be registered under the
United States Securities Act of 1933, as amended or applicable state
securities laws, and may not be offered or sold within the United States or
to, or for the account or benefit of a U.S. person, as such term is defined in
Regulation S under the U.S. Securities Act, registration or an applicable
exemption from U.S. federal and state registration requirements. This release
does not constitute an offer for sale of securities in the United States.
About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development
company focused on the 100%-controlled Constancia Cu-Mo-Ag-Au deposit in
southern Peru. The Constancia Project currently has a 43-101 compliant
indicated resource of 256.3M tonnes at 0.50% Cu (2.85 Billion lbs Cu) and an
inferred resource of 156.5M tonnes at 0.33% Cu (1.15 Billion lbs Cu).
A 43-101 compliant scoping study titled "Preliminary Assessment of the
Constancia Project, Department of Cusco, Peru" and dated December 11, 2007
using the previous resource block model anticipates a project producing in
excess of 90,000 tonnes of copper annually. That study indicated the project
has a net present value of up to $530 million and an internal rate of return
of 25.3 percent, both including a 25% contingency. The following long-term
commodity price assumptions used in the study: copper $1.80 per pound,
molybdenum $12 per pound and silver $11 per ounce. If a revised price deck of
copper $2.00 per pound, molybdenum $15 per pound and silver $10.50 per ounce
is used in the same Discounted Cash Flow Model the net present value increases
to $746 million and an internal rate of return of 31% (including a 25%
contingency) based on the 55,000 tpd production case. The full study, dated
December 11, 2007, and is available for viewing on SEDAR.
The technical information provided in this press release was reviewed and
approved by Robert. W. Baxter (MAusIMM), the President and a director of the
Company and a qualified person for the purposes of National Instrument 43-101.
For further information:
For further information: Patrick Evans, CEO; or Chris Reynolds, CFO;
Phone: (416) 408-4088, Fax: (416) 408-4077, E-Mail: firstname.lastname@example.org,
Web Site: www.norsemont.com