2016 and Prior
|Dec 21, 2012 |
December 21, 2012, Timmins, Ontario - Moneta Porcupine Mines Inc. (TSX:ME) (OTC:MPUCF) (XETRA:MOP) (the "Company") announces the completion of its previously announced bought deal offering of 15,392,077 flow-through common shares (Flow-Through Shares) at $0.35 and 10,307,885 common shares at $0.26 per share, for aggregate gross proceeds of $8,067,277 (the "Offering").
Ian C. Peres, President and CEO of Moneta commented, "We are pleased to announce the closing of this significant financing and we would like to thank the underwriters who sponsored the transaction for their positive endorsement of the progress that Moneta has made to date. The proceeds of this financing, in tandem with our current cash position, results in Moneta being fully funded for the 2013 exploration program to advance our flagship Golden Highway Project."
The Offering was conducted on a bought deal private placement basis by Haywood Securities Inc. and a syndicate of underwriters, including Stifel Nicolaus Canada Inc., Cormark Securities Inc., and Paradigm Capital Inc. (collectively, the "Underwriters"). A cash commission of $281,953 was paid to the Underwriters in connection with the Offering and compensation warrants were issued to the Underwriters entitling them to purchase up to 1,079,998 common shares of the Company at a price of $0.28 per common share until June 21, 2014.
The proceeds received by the Company from the sale of the Flow-Through Shares will be primarily used to incur Canadian exploration expenditures that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's Golden Highway project, which will be renounced to the subscribers with an effective date no later than December 31, 2012, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares. The balance of the net proceeds of the Offering will be used for working capital and general corporate purposes. The shares issued in connection with the Offering are subject to a four-month hold period, which expires on April 21, 2013.
Moneta holds a 100% interest in 5 core gold projects strategically located along the Destor Porcupine Fault Zone in the world class Timmins Camp with over 85 million ounces of past gold production. Moneta's land position is one of the largest after three gold producers including the highly prospective Golden Highway Project. The Golden Highway Project covers 12 kilometers of a highly prospective volcanic/sedimentary belt along the Destor Porcupine Fault Zone and currently hosts a NI 43-101 resource estimate of 1,091,000 ounces indicated (31.1 Mt at 1.09 g/t Au) plus 3,204,000 ounces inferred (83.3 Mt at 1.20 g/t Au), clustered within four kilometres. The Golden Highway Project hosts exceptional infrastructure including paved highway access, water, electricity, skilled labor force, and nearby mills.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Ian C. Peres, President & CEO
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
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