Completion of $3.16 Million Initial Public Offering and Listing of Common Shares on TSX Venture Exchange
MINERAL MOUNTAIN RESOURCES LTD.
Suite 201, 1416 West 8th Ave.
Vancouver, BC V6H 1E1 Tel: 604-639-4455 Fax: 604-639-4451
TSXV: MMV June 28, 2010
For Immediate Release NR 10-01
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
COMPLETION OF $3.16 MILLION INITIAL PUBLIC OFFERING AND LISTING OF COMMON SHARES ON TSX VENTURE EXCHANGE
(Vancouver, June 28, 2010) – Mineral Mountain Resources Ltd. (TSXV: MMV) (“Mineral Mountain” or the “Company”) is pleased to announce the closing today of its initial public offering (the “IPO”) pursuant to a prospectus dated June 2, 2010 filed in the Provinces of British Columbia, Alberta and Ontario. The IPO involved the issuance of: (a) 6,650,000 units (the “Units”) at a price of $0.25 per Unit; and (b) 5,000,000 flow-through shares (the “FT Shares”) at a price of $0.30 per FT Share for total gross proceeds of $3,162,500.
Each Unit consists of one common share of the Company (a “Share”) and one-half of one nontransferable common share purchase warrant (each whole warrant, a “Warrant”) with each Warrant being exercisable into an additional Share for period of 2 years from the closing of the IPO at an exercise price of $0.35 in the first year and $0.40 in the second year.
The IPO was conducted by Canaccord Genuity Corp. (the “Agent”). The total number of Units issued includes 1,650,000 Units issued pursuant to the exercise of an over-allotment option granted to the Agent, which was exercised in full. The Company paid the Agent a cash commission equal to 7.5% of the gross proceeds raised and granted the Agent warrants (the “Agent’s Warrants”) entitling the Agent to acquire, in the aggregate, up to that number of Shares that is equal to 7.5% of the number of Units and FT Shares sold under the IPO. The Agent’s Warrants have a term of 2 years from the closing of the IPO and an exercise price of $0.35 in the first year and $0.40 in the second year. The Company also paid the Agent a corporate finance fee of 150,000 Units.
The Company has made application to list the Shares on TSX Venture Exchange. It is expected that the Shares will commence trading on TSX Venture Exchange at market open on Wednesday June 30, 2010 under the symbol MMV.
The Company is a British Columbia-based company primarily engaged in the acquisition of mineral resource properties in Canada and the exploration of such properties for minerals. Minerals of interest to the company include precious metals including gold and silver and base metals including zinc, lead and copper.
The Company’s principal asset and project is its interest in the Kootenay Arc Property, located in the Kootenay District of southeastern British Columbia. The centre of the property is approximately 60 kilometres east-southeast of Revelstoke and 65 kilometres northeast of Nakusp. The property occupies a total area of approximately 60,270 hectares (149,000 acres) over a 60 kilometre long by 15 kilometre wide trend. The property is comprised of 169 mineral claims, four crown grants and one mining lease. The Company holds a 100% interest in 157 of the mineral claims (subject to certain net smelter return royalties) and holds options to acquire a 100% interest in the 12 remaining mineral claims, four crown grants and one mining lease (subject to certain net smelter return royalties).
The net proceeds of the IPO will be used primarily for the continued exploration of the Kootenay Arc Property, to fund the Company’s general and administrative expenses and to provide the Company with a working capital reserve.
On behalf of the Board of Directors of MINERAL MOUNTAIN RESOURCES LTD.
“Marshall Bertram”
Marshall Bertram President and Chief Executive Officer
For further information, contact: Marshall Bertram, President and CEO Mineral Mountain Resources Ltd.
604-639-4455
Neither the 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.
The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including the United States.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's prospectus dated June 2, 2010 for a more complete discussion of such risk factors and their potential effects, a copy of which may be accessed through the Company’s page on SEDAR at www.sedar.com.