News Column

Castle Mountain Mining Company Limited Announces Bought Deal Offering of 7,700,000 Units

June 27, 2014



By a News Reporter-Staff News Editor at Mining & Minerals -- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Castle Mountain Mining Company Limited (TSX VENTURE:CMM) (the "Company") announced that it has entered into an agreement with a syndicate of underwriters, led by Edgecrest Capital Corporation along with Canaccord Genuity Corp., MGI Securities Inc., and Haywood Securities Inc. who have agreed to purchase, on a "bought deal" basis 7,700,000 units of the Company (each, a "Unit") at a purchase price of $0.65 per Unit. Each Unit consists of one common share (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant") of the Company. Each Warrant will expire twenty four (24) months from the date of issue (the "Warrant Expiry Date") and will entitle the holder thereof to purchase one Common Share (a "Warrant Share") at a price of $1.00 per Warrant Share.

In addition, the Company has also granted the underwriters an over-allotment option to purchase up to a further 15% of the number of Units sold. This over-allotment option is exercisable in whole or in part, at the sole discretion of the underwriters, at any time until and including 30 days following the closing of the offering.

This bought deal offering is expected to close on or about June 30, 2014 and provide the Company with gross proceeds of approximately $5.0 million (or $5.8 million if the over-allotment option is exercised in full). The net proceeds of the Offering will be used for Phase 2 drilling at the Castle Mountain Property and general corporate purposes. The offering is subject to certain customary conditions, including approval of the Toronto Stock Exchange Venture (TSX-V).

The Units will be offered by way of a short form prospectus in provinces of Canada, other than the Province of Quebec, and may also be offered by way of private placement in the United States or other jurisdictions outside of Canada.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any offer or sale of the securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offered Units have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Neither 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.

Keywords for this news article include: Production, Manufacturing, Mining and Minerals.

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Source: Mining & Minerals


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