Financing provides funding for exploration on the McGarry and
Kerr-Addison properties, and on additional possible property
TORONTO, Dec. 31 /CNW/ - Armistice Resources Corp. (TSX: AZ) today
announced that it has closed the first tranche of the planned
private-placement equity offering that it announced on December 21,
2010. In the first closing, Armistice has issued a total of 6,190,000
flow-through shares at $0.50 per share for gross proceeds of
As previously announced, the offering is intended to raise gross
proceeds of up $6 million and is being made on a best-efforts basis.
D&D Securities Inc. (D&D) is acting as the lead agent for a syndicate
that includes Northern Securities Inc. The total offering is planned to
consist of approximately 8,286,111 units at $0.45 per unit and up to
approximately 6,250,000 flow-through shares at $0.50 per share. Each
unit will comprise one common share and one-half of one warrant. Each
whole warrant will be exercisable into one common share at a price of
$0.55 for a period of 18 months from the closing date of the offering.
The second tranche is expected to close early in January 2011.
The overall financing will provide Armistice funding to move its McGarry
Mine gold project into production in 2011 and also will provide the
company with the flexibility to acquire additional property and to
launch a significant exploration program on both the McGarry property
and the adjacent Kerr-Addison property for which it has signed a
definitive five-year option agreement for the purchase of up to 100
percent of the mineral rights.
About Armistice Resources Corp.
Armistice Resources, a Canadian-based exploration and development
company, expects to begin gold production in 2011 from its McGarry Mine
in the Kirkland Lake area of northeastern Ontario. The McGarry Mine is
located in Virginiatown on the prolific Larder Lake-Cadillac Break that
extends 200 km east-west straddling the Ontario and Quebec border and
that has produced 95 million ounces of gold. The McGarry Mine is
adjacent to the Kerr-Addison Gold Mine that has produced more than 11
million ounces of gold. The McGarry Mine consists of 33 contiguous
patented mining claims, including three licenses of occupation,
totaling 484 hectares. The McGarry Mine is fully permitted and all
equipment and systems at the site have been brought up to standards,
including its installed mining plant. Armistice Resources is listed on
the Toronto Stock Exchange (Symbol: AZ) and currently has 86,836,899
common shares issued and outstanding. To find out more about Armistice
Resources, please visit the company's website at www.armistice.ca.
This news release contains forward-looking statements, including
completion of the equity offering and current expectations on the
timing of the commencement of production. These forward-looking
statements entail various risks and uncertainties that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Such statements are based on current
expectations, are subject to a number of uncertainties and risks, and
actual results may differ materially from those contained in such
statements. These uncertainties and risks include, but are not limited
to, the strength of the Canadian economy; the price of gold;
operational, funding, and liquidity risks; the degree to which mineral
resource estimates are reflective of actual mineral resources; the
degree to which a pre-feasibility study gives sufficient grounds for
classifying the indicated mineral resources as probable reserves; and
the degree to which factors which would make a mineral deposit
commercially viable are present; the risks and hazards associated with
underground operations. Risks and uncertainties about Armistice
Resources' business are more fully discussed in the company's
disclosure materials, including its annual information form and MD&A,
filed with the securities regulatory authorities in Canada and
available at www.sedar.com and readers are urged to read these
materials. Armistice Resources assumes no obligation to update any
forward-looking statement or to update the reasons why actual results
could differ from such statements unless required by law.
SOURCE Kerr Mines Inc.
For further information: For further information:
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
416-594-1600 ext. 223