VANCOUVER, Jan. 15 /CNW/ - Roca Mines Inc. (ROK: TSX-V) ("Roca" or the
"Company") announces that it will be completing a non-brokered private
placement for proceeds of $1 million through the issuance of 4,000,000 units
at a price of $0.25 per unit. Proceeds from this financing will be used for
general working capital.
Each unit will consist of one common share of Roca and one common share
purchase warrant. Each warrant will entitle the holder to purchase one
additional common share at a price of $0.35 for 24 months from the closing
date. All shares and warrants issued under this private placement will be
subject to a four month hold period. Finders' fees payable in cash and/or
securities will be paid on closing in connection with this financing, which is
subject to regulatory approval.
As a result of the rapid decline in molybdenum prices, operating
cash-flows from sales completed in the first quarter ended November 30, 2008
were approximately $12 million lower than forecasted. The Max molybdenum mine
restarted production on January 8, 2009 and the Company remains cash-flow
positive at today's molybdenum prices, however, the unscheduled shutdown has
resulted in an immediate need for a working capital injection.
The Phase I mine plan for MAX Molybdenum Mine is focused on the deposit's
high-grade zone containing 280,000 measured and indicated tonnes grading 1.95%
MoS2 (refer to T.N. Macauley's 43-101 compliant technical report dated
September 2004 available via SEDAR). Molybdenum oxide currently trades in the
ROCA MINES INC.
Scott E. Broughton, P.Eng. - President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Investor Relations, Tel: (604) 684-2900, Fax:
(604) 684-2902, Email: email@example.com, Web: www.rocamines.com