TORONTO, Dec. 3 /CNW Telbec/ - Roxmark Mines Limited (TSXV-RMK) today announced the completion of a $350,025 non-brokered private placement financing. The subscriber in this financing is JOV Diversified Flow-Through 2008-II Limited Partnership. This is an affiliated fund that subscribed to last year's financing of Roxmark activities.
Gross proceeds of $350,025 were raised in connection with the issuance of 4,667,000 flow-through units at a price of $0.075 per unit. Each unit consists of one common share and one-half warrant, issued on a "flow-through" basis. Each warrant entitles the holder to purchase one common share at a price of $0.15 until December 3, 2009.
Roxmark paid an aggregate cash finder's fee in the amount of $24,502 and granted 326,690 non-transferable finder warrants to Topleft Securities Ltd., a registered dealer who acted as finder for the financing. Each finder warrant entitles the holder to purchase one common share at $0.10 until December 3, 2009.
Securities issued pursuant to the financing are subject to a hold period expiring on April 4, 2009.
Proceeds of the financing will be used to fund exploration and development programs to advance Roxmark's Northern Empire Gold Mine and the Nortoba-Tyson gold and molybdenum property in the Beardmore mining camp in Northern Ontario.
As previously announced, Roxmark updated the November 2008 Technical Qualifying Report for the Northern Empire Gold Mine in accordance with NI 43-101 regulations. The report was prepared by Peter Bevan, P. Eng., consulting geologist and a qualified person under NI 43-101. Roxmark is commissioning a scoping study to dewater the shaft and installing a headframe, hoist and ancillary equipment on surface and underground.
The mine was operated successfully by Newmont Mines from 1934 to 1941. The mine was serviced by a shaft to a depth of 2,460 feet and produced 149,000 ounces of gold from 426,000 tons of ore at a recovered grade of 0.35 oz Au/t. The on-site 200TPD mill (expandable to 500TPD) was built in 1982 and upgraded and permitted by Roxmark. It processed gold and molybdenum ores in 2005 and 2006, respectively.
The Northern Empire Mine is located in the Town of Beardmore, approximately 200 km northeast of Thunder Bay and serviced by the Trans-Canada Highway. Accessibility of all Roxmark properties, including the Leitch Gold Mine and the Nortoba-Tyson property is a strong advantage.
Certain Roxmark holdings in the Geraldton Camp are under option agreement to Premier Gold Mines Limited (TSX-PG) which has incurred more than $6.1 million in exploration expenditures since September 2007.
About Roxmark Mines
Roxmark Mines Limited is the leader in gold and molybdenum exploration and development in the historically significant Geraldton-Beardmore area of Northwest Ontario. In the last several years, Roxmark has generated cash flow from bulk-sampled gold and molybdenum processed at its fully-permitted mill and has the advantage of infrastructure from six formerly highly productive gold mines located on its properties. These mines previously produced nearly two million ounces of gold from high grade ore but were closed primarily due to dramatically lower gold prices at the time and to boundary issues, since eliminated.
Further information is available on the Company's website at www.roxmark.com and on SEDAR under the Company's profile at www.sedar.com.
Forward-Looking Statements
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