Roxmark Completes $1.18 Million Flow-Through Financing
Toronto, Ontario, December 18, 2007. Roxmark Mines Limited (TSXV - RMK) (CNQ - RMKL) announces the completion of a $1,176,915 non-brokered private placement financing. Participants in the financing include two specialized funds and six private investors.
Gross proceeds of $1,176,915 were raised in connection with the issuance of 3,795,500 flow-through units at a price of $0.31 per unit. Each unit consists of one common share and one warrant, issued on a "flow-through" basis. Each warrant entitles the holder to purchase one common share at a price of $0.45 until December 14, 2008 and thereafter at $0.55 until December 14, 2009, subject, in each case, to the right of Roxmark to accelerate the expiry date of the warrants under certain conditions.
Roxmark paid an aggregate cash finder's fee in the amount of $36,526 and granted an aggregate 188,520 non-transferable finder warrants to registered dealers and other persons permitted under applicable securities laws who acted as finders for the financing. Each finder warrant entitles the holder to purchase one common share at $0.31 until December 14, 2009 and is subject to acceleration of expiry on the same terms as the warrants comprising part of the units.
The securities issued pursuant to the financing are subject to a hold period expiring on April 15, 2008.
Proceeds of the financing will be used to fund the exploration and development program to advance Roxmark's holdings of the Northern Empire Gold Mine and the Nortoba gold and molybdenum property in the Beardmore mining camp in Northern Ontario.
As previously announced, Roxmark will commence a drilling program to test the additional known strike length of 1,200 metres still undrilled on the west extension of the Contact Zone at its Northern Empire property. Roxmark also announced that it is planning to reopen the Northern Empire Mine and develop the resources from underground workings.
The Northern Empire 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/t Au. 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.
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 two 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 Roxmark's website at www.roxmark.com and on SEDAR under the Roxmark's profile at www.sedar.com.
Forward-Looking Statements
This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, Roxmark disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Monir Younan, President
Roxmark Mines Limited
801- 80 Richmond St. West
Toronto, Ontario M5H 2A4
Tel.: (416) 860-1636
Fax: (416) 360-7355
E-mail: roxmark@on.aibn.com
Website: www.roxmark.com
Renmark Financial Communications Inc.
Christine Stewart: cstewart@renmarkfinancial.com
Barbara Komorowski: bkomorowski@renmarkfinancial.com
Tel: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com
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