TORONTO, ONTARIO -- (Marketwired) -- 08/16/13 -- Castle Mountain Mining Company Limited (TSX VENTURE: CMM) ("Castle Mountain Mining", "we", "us" or the "Company") announces a proposed non-brokered private placement with the Chairman of the Company, Mr. Robert Buchan, pursuant to which he will subscribe to 1,000,000 units of the Company for a total of C$350,000. Each unit will be sold at a price of $0.35 and will be comprised of one common share of the Company and one half of one warrant. Each warrant will be exercisable into one common share at an exercise price of $0.50 for a period of eighteen months from the date of issuance. Mr. Buchan was given the opportunity to subscribe in this private placement in consideration of his role and contributions as Chairman of the Company. The private placement was approved by the independent directors of the Company and is anticipated to close on or before September 6, 2013, subject to customary closing conditions, including the approval of the TSX Venture Exchange. The securities issued in the private placement will be subject to a four month hold period. The funds will be used for general corporate purposes.
As previously disclosed, the Company has completed its Phase I drill program at the Castle Mountain Project and currently has cash of approximately C$2,000,000, not including funds from the proposed private placement.
As a result of the private placement, Mr. Buchan will hold an aggregate of 2,558,400 common shares of the Company or 4.8%, on a non-diluted basis.
Grant of options
The Company also wishes to announce that its Board of Directors have granted stock options in the aggregate of 1,020,000 to a Director, Officers, employees, and consultants of the Company. The options were granted under the Company's stock option plan and the policies of the TSX Venture exchange.
Each option is exercisable for one common share of the Company at an exercise price of $0.35, based on the closing price of the Company's shares on August 15, 2013.
Of the total grant, 50,000 options have been granted to Proconsul Capital Ltd. ("Proconsul"), a Company founded by Andreas Curkovic, who the Company has retained to provide investor relations services.
About Castle Mountain Mining Company
Subject to certain obligations, Castle Mountain has 100% of the right, title and beneficial interest in and to the Castle Mountain Venture, a California general partnership, which owns the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2001, when mining was suspended due to low gold prices.
The Castle Mountain venture land holdings (7,458 acres total) include patented claims (1,298 acres), and unpatented claims (3,209 acres), covering approximately 4,507 acres, plus additional leased claims of approximately 2,951 acres. The Company has recently completed the Phase 1 drill program which tested several exploration targets at various locations on the property. These drill results were disclosed in press releases dated June 20, 2013 and July 16, 2013 and are available at the Company's website at www.castlemountainmining.com. Upon completion of analysis of the Phase 1 program with the aid of computer generated models, Castle Mountain Mining expects to start a Phase 2 program at the property, subject to financing. Castle Mountain Mining has engaged RPA Inc. to work with the Company in developing a program that will, amongst other things, identify optimal drill locations, meet and exceed QA/QC standards, and allow the historic drilling on the property made up of 354,800 m of drilling across 1,729 drill holes to be used together with recent and future drilling to create a mineral resource on the property that is in accordance with National Instrument 43-101 ("NI 43-101"). The Company anticipates the release of the technical report following the completion of the Phase 2 drill program.
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