Shares Issued and Outstanding: 60,293,448 TSX: NOM BVL: NOM
TORONTO and Lima, Peru, April 8 /CNW/ - Norsemont Mining Inc. (the "Company") (TSX and BVL: NOM) today announced that the Company has closed its previously announced private placement of 6,365,706 Units at a price of C$1.60 per Unit, and a $3.8 million unsecured convertible promissory note, raising gross proceeds of C$13,983,530. The securities issued under the private placement are subject to a four month hold period. D&D Securities Company and Allied Capital Corporation acted as agents on a portion of the Unit offering.
The proceeds from the private placement will be used to complete acquisition obligations, to support continued exploration and development of 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 or applicable state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of a U.S. person, as such term is defined in Regulation S under the U.S. Securities Act, other than through registration or an applicable exemption from U.S. federal and state 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 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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.