VANCOUVER, March 26, 2012 /CNW/ - Cliffmont Resources Ltd. (TSXV: CMO) is pleased to announce that further to its news release of March 01, 2012, it has closed its non-brokered private placement ("Private Placement") of 5,000,000 units ("Unit") at a price of $1.00 per Unit for gross proceeds of $5,000,000. Each Unit consists of one common share of the Company and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share at a price of $1.25 per share for 18 months after closing.
In connection with the Private Placement, the Company paid finders' fees of 6% cash and 6% warrants on a portion of this financing. The Company paid cash of $177,000 and issued 177,000 non-transferable finders' warrants to purchase 177,000 common shares, exercisable at $1.25 per share, for a period of 18 months from closing.
All securities issued pursuant to the Private Placement will be subject to a four month hold period expiring in July, 2012.
The net proceeds from this private placement will be used for the continued exploration of the San Luis Project and for general working capital purposes.
ON BEHALF OF THE BOARD
Jeff Tindale, President and CEO
Cliffmont Resources is a publicly-listed (TSXV: CMO) Vancouver-based mineral exploration company focused on advancing and developing exploration projects in Colombia. Cliffmont is located in the Department of Huila, a prolific historical mining area in central Colombia and has 100% ownership in the San Luis Project, comprising a 2,623 hectare tenement. The San Luis project includes principal targets of gold-silver bearing quartz veins while exploring for mineralization in stockwork, hydrothermal breccias, and gold and gold-copper porphyry. The San Luis district is mining friendly and is supported with a comprehensive infrastructure network. Cliffmont has assembled a strong management team while implementing ongoing community and social initiatives.
Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Neither 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.
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