TORONTO, Aug. 5 /CNW/ - Alexandria Minerals Corporation (TSX
VENTURE:AZX)(FRANKFURT:A9D) announces the closing of a partially brokered
Private Placement (the "Financing") with Pollitt & Co. Inc. ("Pollitt" or "the
Agent") that raised gross proceeds of $5,000,000. The Financing was previously
announced on July 5th, 2010 and an amendment to its terms was announced July
28th, 2010.
Alexandria's President and CEO, Dr. Eric Owens, said, "This is a real
success for Alexandria. Pollitt has done a terrific job by continuing to
develop a strong shareholder base, with nearly 70% of this financing being
completed by large institutions. We also welcome the continued support of
Agnico-Eagle Mines, who are maintaining their 9.9% equity position through
this financing."
A total of 27,777,777 non-flow through Units ("Units") were issued at a
price of $0.18 per Unit. Each Unit comprises one common share and a full
Warrant ("Warrant") with each Warrant being exercisable at $0.22 for a period
of one year from closing. The securities issued under the private placement
will be subject to a hold period of four months and one day from the date of
closing, being December 6th, 2010. A commission of $236,442 and 1,313,567
Warrants, where each Warrant is exercisable at $0.22 for a period of one year,
to Pollitt & Co. Inc representing 6% of the brokered portion of the Financing.
The proceeds from the Financing will be used for exploration activities
on the Company's Ontario and Quebec mineral properties, principally aimed at
drilling on the Company's Akasaba project in Val d'Or, Quebec, and for general
corporate purposes. Currently, the Company has two drill rigs operating on the
Akasaba property with the intention of advancing the project towards a NI
43-101 compliant resource later this year.
Additionally, in connection with the Financing Alexandria has paid
Pollitt a financial advisory fee of $59,400 and 330,000 Warrants, where each
Warrant is exercisable at $0.22 for a period of one year.
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About Alexandria Minerals Corporation
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>>
Alexandria Minerals Corporation is a Toronto-based junior gold
exploration and development company with one of the largest property packages
along the prolific, gold-producing Cadillac Break in Val d'Or, Quebec. The
Company has two NI 43-101 compliant gold resources, at Orenada and Sleepy, and
is currently focused on advancing its Orenada and Akasaba gold projects.
Agnico-Eagle Mines Ltd., one of Canada's premiere gold mining companies with
three gold mines along the same geologic trend, owns 10% of the Company, and
has a right to maintain this interest in future financings.
WARNING: This News Release may contain forward-looking statements
including but not limited to comments regarding the timing and content of
up-coming work programs, geological interpretations, receipt of property
titles, potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those currently
anticipated in such statements. Alexandria Minerals Corporation relies upon
litigation protection for forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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/For further information: Andreas Curkovic, Investor Relations, (416)
577-9927; Eric Owens, Alexandria Minerals Corporation, 416-363-9372,
www.azx.ca, info@azx.ca/
