VANCOUVER, Jan. 20 /CNW/ - Norsemont Mining Inc. ("Norsemont")
(TSX-V: NOM; Frankfurt: N8S; WKN: A0DQKK; OTC-BB: NOMFF; ISIN: CA6565291045)
is very pleased to announce it has now closed the previously announced private
placement with Sentient Group for the sale of 3,500,000 Units of the Company
at $4.00 per unit for gross proceeds of $14million. Each unit consists of one
common share and one-half of one common share purchase warrant, with each
whole warrant entitling the holder to purchase one additional common share for
two years at a price of $4.75 per share. The warrants have an "accelerator"
provision such that if the closing price of Norsemont's common shares is $6.00
or higher for 10 consecutive trading days at any time after the closing date,
Norsemont may, by issuance of a press release and written notice to the
holders, give notice of "acceleration" of the warrant expiry date to the day
which is 20 calendar days following the date of issuance of the press release
and notice.
Norsemont President & CEO, Marc E. Levy said: " We are pleased to have
finalized our Private Placement with The Sentient Group. We expect to close on
an additional $2,000,000 within the next two weeks. This significant
investment in our company reaffirms the value of our properties and their
future potential. We look forward to continuing to expand the extent of
mineralization, as well as completing a revised, 43-101 compliant resource
estimate at our Constancia Copper-Gold-Silver-Moly Property, and to initiate
an aggressive exploration program at our Amata gold-silver-copper Property."
The financing proceeds will be used to fund through completion a resource
estimation at Constancia, to initiate an exploration and drilling program on
Amata, and for general working capital.
A commission consisting of cash and agents warrants will be paid to
Allied Capital Corporation, a limited market dealer. The shares, warrants,
agents warrants and any shares issued upon exercise of the warrants and agents
warrants, are subject to a hold period expiring May 20, 2006.
Norsemont Mining is a well-structured and financed exploration company
working in the America's, with a focus on Peru. The Company is currently
drilling the Constancia Cu-Au-Mo project, and commencing exploration at the
Amata Ag-Au property acquired from Rio Tinto.
Marc E. Levy,
Director & President
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.
