NIOGOLD COMPLETES
$2.16M FINANCING AND UPDATES ACTIVITIES IN THE MALARTIC GOLD CAMP
Val-d'Or,
Quebec, December 24, 2009: NioGold Mining Corporation (TSX-V:NOX)
(Frankfurt:NG1) ("NioGold")
is pleased to announce that it has closed its private placement announced
December 7, as amended in its news release of December 9, 2009. NioGold
raised gross proceeds of $2,157,000 through the issuance of 2,690,000
flow-through units (the "FT Units") at a price of $0.30 per FT Unit
($807,000) and 5,400,000 non-flow-through units (the "NFT Units) at a
price of $0.25 per NFT Unit ($1,350,000).
Each FT Unit consisted of a
flow-through common share and one-half of a non-transferable warrant, and each
NFT Unit consisted of one non flow-through common share and one-half of a non-transferable
warrant. Each full warrant from the FT Units and NFT Units will entitle
the holder to purchase one non flow-though common share of NioGold at a price
of $0.50 in the first year from closing and at a price of $0.75 in the second
year from closing, subject to certain acceleration provisions.
In connection with the
placement, the Company paid aggregate finders fees of $111,816 in cash, 80,000
common shares and 287,850 finder's warrants. Each finder's warrant
is exercisable to purchase an NFT Unit on or before December 23, 2011 at a
price of $0.25. All securities issued and underlying any warrants are
subject to a hold period expiring April 23, 2009.
The proceeds of the private placement will be used toward exploration and
development of the Malartic and Val-d'Or gold projects and for general working
capital.
NioGold is also pleased to provide an update on activities in the Malartic
gold mining camp, Abitibi region, Quebec. The Company expects to release
NI 43-101 resource estimates and drilling results in January.
Resource Estimates
Mine Development Associates ("MDA") is expected to complete in the
next few weeks the first NI 43-101 resource estimate on the Marban gold deposit
as well as upgraded resource estimates on the Norlartic and Kierens gold
deposits. The former Marban, Norlartic and Kierens mines, which
collectively produced over 590,000 ounces of gold, are located along a
three-kilometre segment of the Norbenite-Marbanite fault zone.
NioGold completed sectional geologic and mineralised zone interpretations on
cross sections spaced at 12.5-metre intervals across the 1.3-kilometre extent
of the Marban gold mineralised system included in the resource
estimation. MDA used the NioGold sections as the geological foundation
for interpreting gold mineral domains on a total of 221 vertical sections
spaced at six-metre intervals across the deposit. This detailed modeling
has helped to elucidate and define the structural setting of the Marban
deposit. Gold occurs within a number of mineralised shear zones within
the mafic volcanic 'Mine Sequence', which has been deformed into relatively
tight folds that are characterised by sub-horizontal fold axes. These
folds most commonly occur between -50 to -150 metres vertical depth. The
mineralised shears are folded along with the host mafic volcanic units, but
gold mineralisation extends for significant distances outward from the folds.
In addition to the new Marban resources, the mineral resources at the
Norlartic and Kierens deposits, first reported on June 28, 2007, are being
updated. These updates include new data from historic holes that NioGold
recovered from its archives, as well as a significant extension of the
Norlartic modeling beyond the limits of the 2007 resources. This new portion
of the Norlartic deposit to be incorporated into the updated modeling includes
significant shallow mineralisation that may be amenable to open-pit
extraction. Three-dimensional rectification of the Norlartic and Kierens
gold mineral domains on level plans, spaced at three-meter intervals along the
full vertical extent of the presently defined gold mineralisation, will be
incorporated into the updated modeling. This detailed modeling should
allow significant portions of the Norlartic and Kierens resources to be
upgraded from Inferred to Indicated.
Exploration Drilling
Drilling on the Malartic camp land holdings resumed in September.
Drilling efforts were concentrated along the projection of the Marbanite and
Norbenite faults to the northwest and on trend with the Marban, Norlartic and
Kierens gold deposits. To date, 4,450 metres of drilling has been
completed on the target. Several important shear zones containing
sections of sulphide mineralisation were intersected. Pending complete
assay results from this drilling and new structural interpretation of the
sector, the drill rig was mobilised to the Marban deposit area. Two drill
hole fences are planned to investigate the east and west extent of the
Marbanite fault and Mine Sequence. The drill hole sections are located
450 metres east and 300 metres west of NioGold's previous drilling.
The management of NioGold would like to take this opportunity to wish its
shareholders and their families a safe and happy holiday season.
NioGold Mining Corporation - � The Golden Highway Runs Through
NioGold �
NioGold Mining Corporation is a junior exploration company primarily focused
on GOLD. The Company's flagship projects are located in the Malartic and
Val-d'Or gold mining camps, Abitibi region of Quebec. The camps have produced
over 27 million ounces of gold and presently encompass several active advanced
exploration and mine development projects such as Canadian Malartic (Osisko
Mining), Goldex (Agnico-Eagle), Kiena (Wesdome), Lac Herbin (Alexis Minerals)
and Midway (Northern Star Mining). The Malartic camp land holdings
encompasses three former gold producers, namely the Norlartic, Kierens (First
Canadian), and Marban mines that collectively produced over 590,000 ounces of
gold.
NioGold's experienced and qualified technical team will ensure the
successful advancement of the Company's projects towards the highest quality
mineral resources. NioGold invites you to visit the company website at www.niogold.com.
This news release was prepared by Rock Lefran�ois, P.Geo. (OGQ), the
Company's President and Qualified Person as defined by National Instrument
43-101. For information on NioGold Mining Corporation contact:
Michael A. Iverson, Chairman &
CEO
Dale Paruk,
Vice-President
miverson@niogold.com
dparuk@niogold.com
Tel: (604)
856-9887
Tel: (604) 662-4505
Toll-free: (877)
642-6200
This Press Release includes forward-looking statements that are subject
to risks and uncertainties. All statements within, other than statements of
historical fact, are to be considered forward looking. There can be no
assurances that such statements will prove accurate and, therefore, readers are
advised to rely on their own evaluation of such uncertainties. The TSX Venture
Exchange or the Frankfurt Stock Exchange did not approve nor do not accept
responsibility for the adequacy or accuracy of this news release.