TSX-VN: "MEX"
TORONTO, March 27 /CNW/ - Kim Harris, Chief Executive Officer, Midlands
Minerals Corporation ("Midlands" or the "Company") is pleased to announce it
has completed a brokered private placement financing of $2,875,000 (Canadian)
in the placement of 11,500,000 units (the "Units") priced at $0.25 per Unit
with each Unit consisting of one (1) common share and one (1) share purchase
warrant (a "Warrant") entitling the holder to acquire a further common share
at a price per share of $0.35 in year one, and $0.45 in year two. The share
purchase warrants are valid until March 20th, 2008.
Dominick & Dominick Securities Inc. and Haywood Securities Inc. acted as
co-agents with respect to this placement and received a commission of $230,000
in cash and 920,000 Broker's Warrants entitling them to acquire a further
common share at $0.35 per share in year one and $0.45 in year two. The
Broker's Warrants are valid until March 20th, 2008.
On January 23rd, 2006, the Company announced a private placement offering
of 10 million Units at $0.25 per Unit for gross proceeds of $2,500,000. This
offering was oversubscribed. On March 15, 2006, the TSX Venture Exchange gave
its consent and approved an additional $375,000, for gross proceeds of
$2,875,000 and for a total of 11,500,000 Units. The Company has fully complied
with all the regulatory requirements with respect to the documentation as it
relates to the TSX Venture Exchange approvals.
All securities issued as part of this financing will be legended and
restricted from trading until July 20th, 2006. With the closing of this
financing, the Company currently has 34,966,668 common shares issued and
outstanding.
The proceeds from the offering will be used for exploration on the
Company's properties in Ghana and Tanzania and for general working capital
purposes. The Company will focus its efforts on Kwahu Praso and Sian
properties located on the Ashanti Gold Belt in Ghana. Sian Goldfields is a
past gold producer with a historical resource and a processing plant. Kwahu
Praso and Sian, which are contiguous, together present a promising exploration
opportunity in the near term. Work will begin on these properties soon after
the completion of 43-101 reports expected to be completed by the end of April
2006, and upon the transfer of the Sian property into the new share capital
company which is being set up in Ghana.
In Tanzania, Midlands' Itilima gold project (Prospecting Licence 1406/99)
is drill ready. Large targets with a +4 kilometre strike length have been
identified. An RC drilling program is planned and work is scheduled to
commence shortly. Funds will also be used to initiate reconnaissance work on
the 2,700 square kilometre New Kilindi property in Tanzania and on Kaniago
concession located on the Asankrangwa Gold Belt in Ghana.
Forward-looking statements involve a number of known and unknown risks,
uncertainties and other factors, which may cause the actual results,
performance or achievements of the company to be materially different from
actual results and achievements expressed or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date the statements
were made and the readers are also advised to consider such forward looking
statements while considering the risks inherent in the business of mineral
exploration.
The TSX-V has in no way passed upon the merits of the proposed
transactions and has neither approved nor disapproved the contents of
this press release.
%SEDAR: 00020880E
