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MINES MANAGEMENT, INC.
ANNOUNCES EXERCISE OF
UNDERWRITER�S OVER-ALLOTMENT OPTION
Spokane, Washington, April 4,
2011 � Mines
Management, Inc. ("Mines Management" or the
"Company") (NYSE Amex: MGN, TSX: MGT) is pleased to announce
that Roth Capital Partners, the sole manager for the Company's
underwritten offering of 4,800,000 shares of common stock that closed on
March 8, 2011, has partially exercised its over-allotment option to
purchase an additional 320,000 shares of common stock of the Company, at
a price of US$3.15 per share. The gross proceeds resulting from the
over-allotment option exercise, which closed earlier today, are
US$1,008,000, or US$947,520 in net proceeds to the Company, after
deducting underwriting commissions and a corporate finance fee but before
deducting offering expenses. The total offering is therefore 5,120,000 shares
of common stock for gross proceeds to the Company of US$16,128,000, or
US$15,160,320 in net proceeds to the Company, after deducting
underwriting commissions and a corporate finance fee but before deducting
offering expenses.
Mines Management
intends to use the net proceeds from the offering for (i) the advancement of the permitting process for its Montanore Project and the commencement of the
Company�s planned delineation drilling program, which will include
advancement of the adit, establishment of
drilling stations and commencement of exploratory drilling and (ii) for
general corporate purposes, including possible acquisition and
exploration of new mining properties.
The securities
described above were offered by way of a shelf registration statement,
which was declared effective by the Securities and Exchange Commission
("SEC") on October 27, 2009, a base shelf prospectus and a
prospectus supplement, each of which has been filed with the SEC. This
news release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which the offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The securities may be offered only by means of the base
shelf prospectus and the prospectus supplement, each of which form a part
of the shelf registration statement. Electronic copies of the prospectus
supplement incorporating the base shelf prospectus relating to the
offering may be obtained by either contacting the underwriter (as set
forth below) or by accessing the SEC website www.sec.gov.
Roth Capital Partners, LLC
Attn: Syndicate Department
24 Corporate Plaza
Newport Beach, CA 92660
Phone: 800-678-9147
Email: Rothecm@roth.com
About
Mines Management Inc.
Mines Management,
Inc. is engaged in the business of acquiring and exploring, and if
exploration is successful, developing mineral properties, primarily those
containing silver and associated base and precious metals. Its primary
focus is on the advancement of the Montanore silver-copper project
located in northwestern Montana.
This press release contains forward-looking
statements within the meaning of the U.S. Securities Act of 1933, as
amended, and U.S. Securities Exchange Act of 1934, as amended, including
statements regarding this proposed offering. Forward-looking statements
are all statements, other than statements of historical facts, included
in this press release that address activities, events or developments
that Mines Management expects or anticipates will or may occur in the
future, including such things as the anticipated use of proceeds of the
offering. When used in this press release, the words
"potential", "indicate", "expect",
"intend", "possible", "hopes",
"believe", "may", "will", "if" and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of Mines Management to be materially different from any future results,
performance or achievements expressed or implied by such statements. Such
factors include, among others, uncertainty of market response to the
offering, the pricing of the offering, the future use of proceeds,
fluctuations in silver and copper prices, general economic conditions,
economic or political events affecting the supply of and demand for
silver and copper, changes in U.S. securities markets, failure to receive
regulatory approvals or changes in the attitude of state and local
officials to the Montanore Project; as well as those factors discussed in
Mines Management's latest Annual Report on Form 10-K and Quarterly Report
on Form 10-Q and other documents filed with the U.S. Securities and
Exchange Commission. Although Mines Management has attempted to identify
important factors that could cause actual results to differ materially
from those described in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or intended.
Except as required by law, Mines Management assumes no obligation to
publicly update any forward-looking statements, whether as a result of
new information, future events or otherwise.
Contact:
Mines Management, Inc.
Attn: Douglas Dobbs, Vice President Corporate Finance & Development
Phone: 509-838-6050
Fax: 509-838-0486
Email: info@minesmanagement.com
Web: www.minesmanagement.com
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