Cadillac Mining Corporation Announces Non-Brokered Private Placement
Vancouver, British Columbia CANADA, April 11, 2012 /FSC/ - Cadillac Mining Corporation (CQX - TSX Venture), announces that it has negotiated, subject to approval by the TSX Venture Exchange, a non-brokered private placement (the Placement) consisting of a maximum of 5,000,000 Units of the Company at a price of $0.20 per Unit, for gross proceeds of $1,000,000. Each Unit comprises one common share and one-half warrant, each whole warrant exercisable at $0.40 for 18 months from closing of the Placement, subject to the accelerator provision described below.
A finder's fee will be paid on a portion of the placement as to 8% in cash or Units, and 8% in brokers' warrants exercisable at $0.40 for 18 months from closing of the Placement. If at any time after closing of the Placement, the trade-weighted price of Cadillac's shares on the TSX Venture Exchange is equal to or greater than $0.55 for fifteen consecutive trading days, the warrants must be exercised within the ensuing 30 days. All securities issued pursuant to the Placement will be subject to a four-month hold period.
The net proceeds of the Placement will be utilized primarily in the Company's forthcoming 5000-meter diamond drilling program on its 100%-owned Goldstrike Project in southwestern Utah, as discussed in the Company's release of March 1, 2012. Initial drilling will focus on the Hamburg Extension where orientation RC drilling performed in December 2011 produced excellent results. Core drilling is expected to better define the relationship between mineralization, structural controls, and stratigraphic constraints, which will serve in developing an exploration model for subsequent larger and more aggressive drilling programs.
As reported previously, permits from the Division of Oil, Gas & Mining (DOGM) of the Utah Department of Natural Resources, and the US Department of the Interior BLM are in place for a further nineteen angle drill holes planned primarily for the Hamburg Extension target at Goldstrike. The DOGM is currently processing Cadillac's application for inclusion of an additional thirteen drill holes under the existing permit. Drilling is expected to commence this month.
About Cadillac Mining Corporation
Cadillac Mining Corporation is a junior exploration and development company based in Vancouver, Canada focused on large-scale precious and base metal projects in the Abitibi geological province in Canada, and the Great Basin in the western USA. The Company's long term objective is the discovery of a major deposit through carefully planned exploration strategies. Its business model provides shareholders access to a wealth of exploration experience, dedicated management and the opportunity to experience discovery through a very conservatively capitalized company.
The Company has approximately 29 million shares outstanding prior to this Placement.
On Behalf of the Board of Directors
Victor Erickson, P.Eng.
President & CEO
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the Canadian securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the recently completed reverse circulation drilling program which may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that could be encountered if additional exploration and drilling is completed.
In connection with the forward-looking information contained in this news release, Cadillac has made numerous assumptions, regarding, among other things: the geological data and information has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. While Cadillac considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Cadillac's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the possibility that future drilling on the Goldstrike project may not occur on a timely basis, or at all; that additional drilling may not intersect additional gold mineralization and uncertainty as to timely availability of permits and other governmental approvals.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and Cadillac disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
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 the release.
For more information, please contact:
Website www.cadillacmining.com
Company Victor Erickson 604-684-7300
President & CEO
v.erickson@cadillacmining.com
To view this release as a web page, click onto the link below:
www.usetdas.com/PR/cadillacmining11042012.htm
Source: Cadillac Mining Corporation (TSX-V: CQX) http://www.cadillacmining.com
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