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Re: News Releases - Wednesday, February 03, 2010
Probe Mines Announces Closing of $250,000 Non-Brokered Private
Placement
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Toronto, February 3, 2010 -- The Directors of PROBE MINES LIMITED
(TSX-V: PRB) ("Probe") are pleased to announce the closing of the
recently announced private placement financing for gross proceeds of
$250,000 consisting of the sale of 500,000 Units sold at $0.50 per
Unit. Each Unit consists of one common share and one common share
purchase warrant. Each whole common share purchase warrant entitles
the holder to acquire one common share for $0.75 for a period of two
years after closing. All securities will be subject to a hold period
of four months.
Proceeds of the financing will be used to continue the Corporation's
exploration efforts in the McFauld's Lake area, as well as for working
capital and new project acquisitions. Probe is currently evaluating
exploration programs for the 2010 season on all of its McFauld's
assets, including the Probe-Noront Resources Joint Venture claims and
the 100%-owned Tamarack, Victory and McFauld's West Projects.
The private placement was completed with Pinetree Resource Partnership
("Pinetree") which currently owns 4,500,000 common shares of Probe
representing 13.4% of the 33,566,472 issued and outstanding common
shares. Upon closing of the proposed financing, Pinetree owns
5,500,000 common shares of Probe on a fully diluted basis representing
14.1% of the issued and outstanding common shares. The private
placement by Pinetree was unanimously approved by the directors of
Probe who are all arm's length to Pinetree. The private placement by
Pinetree is a "related party transaction" as defined by Multilateral
Instrument 61-101-Protection of Minority Security Holders in Special
Transactions ("MI 61-101") under applicable securities laws as Pinetree
holds more than 10% of the issued and outstanding shares of Pinetree.
However, Probe is exempt from the valuation and minority approval
requirements of MI 61-101 for related party transactions because the
fair market value of the private placement is not more that 25% of the
market capitalization of Probe.
About Probe Mines:
Probe Mines Limited is a well financed, Canadian base and precious
metal exploration company with approximately $4.2M in treasury and a
portfolio of highly prospective mineral properties. The Company is
currently focused on the McFauld's Lake area where it owns 931 claims
covering almost 15,000 hectares, including joint venture properties
with Noront Resources covering 87 of these claims. Probe currently has
an option-joint venture agreement with Lake Shore Gold Corp on its
Bristol Township gold project adjacent to Lake Shore's million-plus
ounce gold deposit. Recent exploration results from Lake Shore include
an 83.4m intersection grading 12.75 g/t gold less than one kilometre
from Probe's claims. Probe also maintains a 5% net smelter royalty on
a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, which
began production in 2008. The Company has only 34,066,472 shares
issued and outstanding, which trade on the TSX Venture Exchange under
the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical
information in this release. To find out more about Probe Mines
Limited, visit our website at www.probemines.com, or contact:
David Palmer
President
Tel: (416) 777-6703
Karen Willoughby
Investor Relations
Tel: (866) 365-4724
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Copyright (c) 2010 PROBE MINES LTD. (PRB) All rights reserved. For
more information visit our website at http://www.probemines.com/ or
send mailto:info@probemines.com
Message sent on Wed Feb 3, 2010 at 8:28:08 AM Pacific Time
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