Share Issued and Outstanding: 50,422,713
TSX: NOM
BVL: NOM
TORONTO and LIMA, Peru, June 12 /CNW/ - Norsemont Mining Inc. ("the Company") (TSX: NOM, BVL: NOM) today announced that the Company has arranged a non-brokered private placement of 2.3 million Units. The Units are being placed at a price of $4.00 each, for gross proceeds of $9.2 million. This represents the first tranche of a planned $16 million private placement.
Each Unit under the private placement consists of one common share and one-half of one common-share purchase warrant. Each whole common-share purchase warrant entitles the holder to acquire one additional common share of the company at an exercise price of $4.50 within 24 months of closing. Closing is expected on or before July 10, 2007. The placement is subject to regulatory approval.
The Sentient Group, currently the largest shareholder in the Company, has agreed to purchase $2 million of the $9.2 million placement.
The proceeds from the private placement will be used for property acquisition purposes, to fund an expanded Cu-Mo-Ag-Au exploration program at the Constancia Project and for general working capital purposes.
The securities sold have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development company focused on the 100 percent-controlled Constancia Cu-Mo-Ag-Au deposit in Southern Peru.
The Constancia Project currently has a 43-101 compliant indicated resource of 256.3M tonnes at 0.5% Cu (2.85 Billion lbs Cu) and an inferred resource of 156.5M tonnes at 0.33% Cu (1.14 Billion lbs Cu). A recently completed scoping study anticipates a project producing in excess of 90,000 tonnes of copper annually. The study indicates the project has a net present value of $530 million and an internal rate of return of 25.3 percent. The following long-term commodity price assumptions were used in the study: copper $1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The full study, dated December 11, 2007, and titled "Preliminary Assessment of the Constancia Project, Department of Cusco, Peru" is available for viewing on SEDAR.
The technical information provided in this press release was reviewed and approved by Robert. W. Baxter (MAusIMM), the President and a director of the Company and a qualified person for the purposes of National Instrument 43-101.