TORONTO, Canada, May 30 /PRNewswire/ --
- This Press Release, Required by Applicable Canadian Laws, is Not for Distribution to U.S. News Services or for Dissemination in the United States, And Does Not Constitute an Offer of the Securities Described Herein. These Securities Have Not Been Registered Under the United States Securities Act of 1933, as Amended, or any State Securities Laws, and May Not be Offered or Sold in the United States or to U.S. Persons Unless Registered or Exempt Therefrom.
Duluth Metals Limited ("Duluth") (TSX: DM) (TSX:DM.U) is pleased to announce that it is completing the balance of a brokered private placement with a placement agent for up to 12,000,000 units in the capital of the Corporation at $1.15 CDN per unit (the "Issue Price") aggregating $13,800,000 CDN, previously announced on April 20, 2007.
Each unit consists of one common share of Duluth with one common share purchase warrant ("Warrant") where each Warrant is exercisable into one common share at any time prior to the date that is three years from the initial Closing Date upon payment of $1.65 CDN per share. The placement agent has the right to purchase up to an additional 1,500,000 Units at the Issue Price exercisable within five business days from the completion of the private placement. The funds will be used to advance exploration on the Corporation's Minnesota property and for working capital purposes.
The private placement has received conditional approval from the Toronto Stock Exchange. One of TSX's conditions was that shareholder approval be obtained for those Units placed in excess of an aggregate of 5,500,000. Duluth proceeded to obtain written shareholder approval and is pleased to announce that shareholders holding 36,445,771 common shares (being 73.32% of the 49,713,483 common shares outstanding immediately prior to the placement of 5,500,000 Units) have consented in writing to the private placement. Accordingly, Duluth is now completing the private placement transactions.
About Duluth Metals
Duluth is committed to acquiring, exploring and developing copper, nickel and platinum group metal deposits. Duluth's principal property is the Maturi Extension Property located within the rapidly emerging Duluth Complex mining camp in northeastern Minnesota. The Duluth Complex hosts one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals.
This document may contain forward-looking statements (including "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to Duluth's operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Duluth's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Duluth disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
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