Lysander Minerals to raise $3-million for Verticalnaya

2009-08-25 06:57 ET - News Release

Mr. Bryce Porter reports

LYSANDER ANNOUNCES C$3 MILLION UNIT FINANCING

Lysander Minerals Corp. has entered into an agreement with GMP Securities LP in connection with a "best-efforts" private placement offering consisting of up to 15 million units at a price of 20 cents per unit for gross proceeds of up to $3-million.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share of the company at the exercise price of 30 cents per common share for a period of 24 months following the closing of the offering.

The company expects to close the offering on or about Sept. 15, 2009, subject to applicable regulatory approvals. All securities issued as part of this placement will be subject to a four-month hold period from the closing date.

It is intended that the net proceeds received by the company under the offering shall be used for costs related to the care and maintenance of the Verticalnaya anthracite mine currently under option by the company while the company pursues the necessary approvals in connection with completing the acquisition and assesses development plans for the mine and for general working capital. In the event that the company is unable to obtain the requisite approvals (including shareholder and regulatory approval) in connection with the acquisition of the Verticalnaya anthracite mine, the net proceeds of the offering will be used by the company for other resource investments and for general working capital.