Jul 26, 2005
Probe Mines Limited Announces Completion of $2,000,000 Private Placement to explore Victory Project
The Directors of PROBE MINES LIMITED (TSX-V: PRB) are pleased to announce completion of a private placement for gross proceeds of $200,000 which comprises the balance of the $2,000,000 private placement which has now been closed. The $200,000 private placement consisted of the sale of 444,444 Units sold on a flow-through basis at $0.45 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share for $0.70 until July 25, 2006, and thereafter for $1.00 until July 25, 2007, at which time the warrants expire. All securities issued in conjunction with the offering are subject to a four-month hold period, which expires on November 26, 2005. In conjunction with this financing, cash finders' fees totaling $10,000 were paid, and compensation warrants were issued to acquire a total of 44,444 Units exercisable at $0.45 per Unit until July 25, 2007. Proceeds of the financing will be used to fund exploration on the Victory Project and for general working capital purposes.
On July 18, 2005 Probe announced the commencement of drilling of the Victory Project (Press Release 11). The Victory Cu-Zn-Au-Ag Project is located in the James Bay Lowlands. A recently completed interpretation of the airborne geophysical results by Fugro Geophysics indicates at least 34 conductors with volcanogenic massive sulphide potential exist within the Victory property. The initial diamond drilling program will comprise approximately 2000m to test 12 of the conductors and results will be released as soon as they become available. The remaining conductors will be evaluated in future programs.
The Victory Project represents a rare opportunity for a junior exploration company, encompassing a new and unexplored greenstone belt associated with an area of recent Cu-rich base metal VMS discoveries. Probe mines maintains 100% ownership of 489 claims (19,500 acres), acquired by staking immediately behind the first airborne electromagnetic survey of the belt. VMS deposits typically occur in clusters at one or more lithological horizons and can be very rich in copper, zinc, gold and silver. For example, the Noranda mining camp has produced 2.4 million tons of copper, 1.9 million tons of zinc, 14.1 million ounces of gold and 94.4 million ounces of silver from 20 base metal mines encompassing an area 75% the size of the area covered by the Victory belt, while the McFauld's Lake discoveries include drill intersections of up to 19m grading 8.08% copper.
Probe Mines Limited is a well-funded base and precious metal exploration company with a portfolio of highly prospective mineral properties. Probe has identified three separate base metal-enriched horizons on its McFauld's Lake property, while gold mineralization has been discovered on its Bristol Township property in the new West Timmins gold camp. As well, Probe Mines maintains a 5% net smelter royalty interest in claims covering part of Agnico-Eagle Mines Limited (TSX: AGE) Goldex Mine property in Val d'Or, Quebec, which is currently undergoing final feasibility studies. Probe's shares trade on the TSX Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited (TSX-V: PRB), visit our website at www.probemines.com or contact:
President, Probe Mines Limited
Tel: 416-777-6703, Fax: (6705)
Harry J. Hodge
Director, Probe Mines Limited
Tel: 416-363-4376, Fax: (4606)
Agora Investor Relations
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.
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