VANCOUVER, May 20 /CNW/ - Norsemont Mining Inc. ("Norsemont") is pleased
to announce that further to its news releases dated April 13, 2005 and May 5,
2005, it has received final TSX Venture Exchange acceptance with respect to
the closing of its non-brokered private placement.
The Company sold 3,985,878 units at a price of $0.80 per unit for gross
proceeds of $3,188,700. Each unit consists of one common share and one share
purchase warrant of the Company. Each whole warrant entitles the holder to
purchase one additional common share of the Company at a price of $1.10 per
share up to two years from the date of closing. The warrant expiry date is
subject to "acceleration" by the Company if the closing price of the Company's
common shares is $2.00 or higher for 20 consecutive trading days. Securities
issued pursuant to the private placement will be subject to a four month hold
expiring September 17, 2005.
The Company has agreed to pay finder's fees totaling $201,600 to several
finders on a portion of the private placement. The financing proceeds will be
used primarily to fund the company's anticipated work program on the
Constancia project, for investigation of asset acquisition activities and
general working capital.
The Company is also pleased to announce it has received final TSX Venture
Exchange acceptance of its agreement with Rio Tinto Mining and Exploration
Ltd. for the acquisition of up to a 70% interest in the Constancia copper-gold-
molybdenum porphyry project, Chumbivilcas Province, Peru. In the event that
Norsemont discovers a global resource of 8.8 billion pounds of copper, Rio
Tinto retains a right to claw back an undivided 17% interest. The Company has
agreed to issue 150,000 common shares to Canaccord Capital Corp. as a finder's
fee.
(signed)
Marc E. Levy President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
We seek Safe Harbor.
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