Business
Queenstake Announces Closing of US$10 Million Private Placement from Newmont
Queenstake Announces Closing of US$10 Million Private Placement from Newmont.
About this update from Nuvau Minerals Inc.
[{"type":"text","content":"\n\n\n\n\nDENVER, April 13 /CNW/ -- Queenstake Resources Ltd.\n(Amex: QEE; TSX: QRL) has closed its equity private placement with Newmont\nCanada Limited (Newmont), a subsidiary of Newmont Mining Corporation\n(NYSE: NEM; TSX: NMC), whereby Newmont purchased 28.51 million Queenstake\ncommon shares at Cdn$0.41 per share for gross proceeds of US$10 million. With\nthis purchase, Newmont owns approximately 4.9% of Queenstake's basic\noutstanding common shares.\nAs part of the private placement, Newmont received warrants that can be\nexercised to acquire up to 28.51 million common shares of Queenstake at a\nprice of Cdn$0.55 for a four-year period, which would generate Cdn$15.7\nmillion in cash if exercised.\nIn addition, affiliates of Newmont are conveying three of their Nevada\nexploration properties, including the Shwin Ranch project along the\nCortez-Battle Mountain Trend, to Queenstake. Another affiliate of Newmont is\nselling concentrates and ore from its Nevada operations to Queenstake for\nprocessing at its Jerritt Canyon roasting and milling facility in Northeastern\nNevada. The contract calls for the purchase of approximately 500,000 tons of\nconcentrates and ore per year over two years. Ore purchases with Newmont may\ncontinue for up to three more years if Queenstake has the spare processing\ncapacity.\nDorian L. (Dusty) Nicol, President and Chief Executive Officer of\nQueenstake, said, \"We are pleased to have closed this significant transaction.\nThe timely closing allows us to immediately optimize utilization of our\nJerritt Canyon milling and roasting facility. It also allows us to accelerate\nexploration early in the field season.\"\nNet proceeds from the private placement will be used to fund exploration\nand for other corporate purposes. Queenstake was advised in this transaction\nby Blackmont Capital Inc. and will pay advisory fees in connection with the\ntransaction.\nThe securities referenced herein have not been and will not be registered\nunder the United States Securities Act of 1933 and may not be offered or sold\nin the United States, unless an exemption from registration is available.\nAfter a contractual six-month holding period, the shares held by Newmont may\nbe freely traded in Canada.\n\nQueenstake Resources Ltd. is a gold mining and exploration company based\nin Denver, Colorado. Its principal asset is...