| ||Tue Feb 27, 2007|
Roca Arranges MAX Molybdenum Project Expansion Financing
| ||Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or the "Company") announces that it has arranged a non-brokered private placement for proceeds of $10 million through the issuance of 7,142,857 units at a price of $1.40 per unit. |
Each unit will consist of one common share of Roca and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $2.25 for 18 months from the closing date. All shares and warrants issued under this private placement will be subject to a four month hold period. Finders' fees payable in cash and/or securities will be paid on closing in connection with this financing, which is subject to regulatory approval.
Proceeds from this financing will be used to accelerate the Company's PHASE II plans at the MAX Molybdenum project including; additional underground development work, further mill upgrades and other infrastructure. The additional underground work, which is estimated to take 9 months, will be coordinated with current project activities and will not further delay development of the PHASE I mine. The completed development of an all-new second adit (tunnel) to the deposit will enhance mine production, lower operating costs and improve ventilation of the underground mine.
This decision to expedite PHASE II development work at MAX reflects management's opinion that present and near-term opportunities exist to sell molybdenum concentrates at strong commodity prices.
Roca plans to be the first new primary molybdenum producer in Canada, with production to commence in 2007. The permitted PHASE I mine plan for MAX will focus on the deposit's high-grade zone containing 280,000 measured and indicated tonnes grading 1.95% MoS2 (refer to T.N. Macauley's 43-101 compliant technical report dated September 2004 available via SEDAR). Molybdenum currently trades in the US$26-27/lb range and is a key alloy in the manufacture of stainless and specialty steel, including pipelines and other energy-related steel infrastructure.
ROCA MINES INC.
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
Email: [email protected]
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Tue Mar 6, 2007, Roca Closes $10 million Financing
You can view the Previous News Releases item: Mon Feb 19, 2007, Roca Appoints Director; Grants Incentive Stock Options
You can return to the main News Releases page, or press the Back button on your browser.