Feb 12, 2008
Probe Mines Closes $2,000,000 Non-Brokered Private Placement with the MineralFields Group to Explore McFauld's Lake Project
Toronto, February 12, 2008 -- The Directors of PROBE MINES LIMITED (TSX-V: PRB) ("Probe") are pleased to announce the closing of a non-brokered private placement financing with the MineralFields Group as announced on February 5, 2008. The private placement consisted of the sale of 2,666,666 Flow-Through Units at $0.75 per Unit for gross proceeds of $2,000,000. Each Unit consisted of one flow-through common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $1.50 until February 7, 2010 provided, however, that should Probe's shares close on the TSX Venture Exchange for a period of 20 consecutive trading days at a price of $2.00 per share or higher during the exercise period, Probe may accelerate the expiry time to 30 calendar days from the date express written notice is provided by Probe to the holder by way of registered mail. In connection with the financing, a finder was issued 105,333 Units with a value of $79,000 or $0.75 per Unit, and 210,666 non-flow-through finder options. Each finder option entitles the holder to acquire until February 7, 2010 one common share and one common share purchase warrant exercisable on the same terms as the Warrants at an exercise price of $0.75 per finder option. All securities issued in conjunction with the offering are subject to a hold period, which expires on June 8, 2008.
"We are very pleased to be continuing our relationship with MineralFields Group", said Dr. David Palmer, President and CEO. "This is an important milestone in the growth of Probe Mines Limited and we look forward to working with MineralFields Group as we develop our holdings in the McFauld's Lake region."
Proceeds of the financing will be used to fund exploration on the Company's McFauld's Lake West Project, located immediately north of Noront Resources' high-grade nickel-copper-platinum group element (PGE) discovery in the McFauld's Lake area. The exploration program is described in detail in Probe's January 30, 2008 Press Release (2/2008). Field operations are currently underway on the McFauld's West property with the ground grid established and mobilization of Insight Geophysics' field crews expected shortly. The geophysical program will be followed by diamond drilling.
The McFauld's West Project is located immediately adjacent Noront Resources' Eagle One property where high-grade nickel-copper-PGE mineralization was discovered during this past summer. The most recent drilling intersection returned the highest grade material to date averaging 6.25% nickel, 2.75% copper, 1.85 g/t platinum, 10.23 g/t palladium, 3.0 g/t gold and 10.3 g/t silver over 46.6 meters. Probe is encouraged by the proximity of the McFauld's West property to this significant discovery and believes there is a strong potential for the property to also host mineralization.
About MineralFields, Pathway and First Canadian Securities (r):
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(r), a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.
About Probe Mines:
Probe Mines Limited is a Canadian base and precious metal exploration company with a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 931 claims covering almost 15,000 hectares. This includes a 100% interest in the McFauld's West Project, comprised of 12 claims (192 hectares) situated less than 450 metres from the site of Noront's significant new nickel-copper discovery, representing one of the closest properties to the discovery. Probe currently has joint venture agreements on its Bristol Township gold project (West Timmins Mining Inc.) and Tamarack base metal project (Mantis Mineral Corp.). The Bristol Project is adjacent to the million-plus ounce gold deposit owned by Lake Shore Gold Corp., which has recently announced a positive pre-feasibility study for the project. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, slated for production in 2008. The company's shares trade on the TSX Venture Exchange under the symbol PRB.
Investors are invited to visit the Probe Mines IR Hub at http://www.agoracom.com/IR/Probemines where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to [email protected] where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
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, visit our website at www.probemines.com, or contact:
David Palmer, Ph.D.
Tel: (416) 777-6703
Tel: (866) 365-4724
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.
You can view the Next News Releases item: Wed Feb 20, 2008, Probe Mines McFauld's West Project Update
You can view the Previous News Releases item: Tue Feb 5, 2008, Probe Mines Announces $2,000,000 Non-Brokered Private Placement with the MineralFields Group to Explore McFauld's Lake Project
You can return to the main News Releases page, or press the Back button on your browser.