Lysander Minerals increases financing to $3.21-million

2009-09-03 08:31 ET - News Release

Mr. Bryce Porter reports

LYSANDER INCREASES SIZE OF PRIVATE PLACEMENT

Lysander Minerals Corp. has agreed to increase the size of the previously announced "best efforts" private placement offering led by GMP Securities LP by 1,075,000 units to up to 16,075,000 units at a price of 20 cents per unit for revised aggregate gross proceeds of up to $3,215,000. The offering was announced in Stockwatch on Aug. 25, 2009. Each unit will consist of o the company and one-half of one common share purchase warrant with each warrant entitling the holder thereof to purchase one common share 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. 17, 2009, subject to applicable regulatory approvals. All securities issued as part of the offering 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.