/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES/
TORONTO, July 5 /CNW/ - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) announces a Brokered Private Placement ("BPP") with Pollitt & Co. Inc. for up to 25,000,000 Units ("Unit") at a price of $0.20 per Unit resulting in gross proceeds of up to $5,000,000.
Each Unit will be comprised of one common share of the Company and one-half of one warrant ("Warrant"), with each whole Warrant entitling the holder to acquire one additional common share of the Company at a price of $0.25 for a period of one year from closing.
The proceeds from the BPP will be used for exploration activities on its Ontario and Quebec mineral properties, principally aimed at drilling on the Company's Akasaba project in Val d'Or, Quebec, and for general corporate purposes. A second drill rig is now on site at Akasaba.
Eric Owens, President and CEO of Alexandria, said: "We are extremely pleased with the efforts to-date of Pollitt & Co Inc., and feel that this is an important strategic financing for Alexandria. This will allow us to speed up the process of delineation drilling at Akasaba, allowing for both fill-in and step-out drilling as we move toward a National Instrument 43-101 resource estimate this Fall."
The closing of the BPP is expected to occur on or before July 31, 2010, and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering shall be subject to a hold period of four months from the date of closing.
In connection with the BPP, a commission of 6% of the gross proceeds raised will be paid to Pollitt & Co. Inc., In addition, up to 6% broker's warrants will be issued to Pollitt & Co. Inc., where each broker's warrant shall be exercisable on the same terms as the Warrants.
About Alexandria Minerals Corporation
Alexandria Minerals Corporation is a Toronto-based junior gold exploration and development company with one of the largest property packages along the prolific, gold-producing Cadillac Break in Val d'Or, Quebec. The Company has two NI 43-101 compliant gold resources, at Orenada and Sleepy, and is currently focused on advancing its Orenada and Akasaba gold projects. Agnico-Eagle Mines Ltd., one of Canada's premiere gold mining companies with three gold mines along the same geologic trend, owns 10% of the Company, and has a right to maintain this interest in future financings.
WARNING: This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Alexandria Minerals Corporation
For further information: For further information: Andreas Curkovic, Investor Relations, (416) 577-9927; Eric Owens, Alexandria Minerals Corporation, 416-363-9372, www.azx.ca, email@example.com