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TORONTO, Aug. 5 /CNW/ - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) announces the closing of a partially brokered Private Placement (the "Financing") with Pollitt & Co. Inc. ("Pollitt" or "the Agent") that raised gross proceeds of $5,000,000. The Financing was previously announced on July 5th, 2010 and an amendment to its terms was announced July 28th, 2010.
Alexandria's President and CEO, Dr. Eric Owens, said, "This is a real success for Alexandria. Pollitt has done a terrific job by continuing to develop a strong shareholder base, with nearly 70% of this financing being completed by large institutions. We also welcome the continued support of Agnico-Eagle Mines, who are maintaining their 9.9% equity position through this financing."
A total of 27,777,777 non-flow through Units ("Units") were issued at a price of $0.18 per Unit. Each Unit comprises one common share and a full Warrant ("Warrant") with each Warrant being exercisable at $0.22 for a period of one year from closing. The securities issued under the private placement will be subject to a hold period of four months and one day from the date of closing, being December 6th, 2010. A commission of $236,442 and 1,313,567 Warrants, where each Warrant is exercisable at $0.22 for a period of one year, to Pollitt & Co. Inc representing 6% of the brokered portion of the Financing.
The proceeds from the Financing will be used for exploration activities on the Company's 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. Currently, the Company has two drill rigs operating on the Akasaba property with the intention of advancing the project towards a NI 43-101 compliant resource later this year.
Additionally, in connection with the Financing Alexandria has paid Pollitt a financial advisory fee of $59,400 and 330,000 Warrants, where each Warrant is exercisable at $0.22 for a period of one year.
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, firstname.lastname@example.org