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| | Mon May 1, 2006
ROCA announces $2 Million Private Placement
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| | Vancouver, British Columbia: Roca Mines Inc. ("Roca" or the "Company") announces that it has arranged a non-brokered private placement of $2 million with Sprott Asset Management Inc. The Company will issue 2,857,143 common shares at a price of $0.70 per share. There will be no warrants issued in conjunction with this private placement and the shares will be subject to a four month hold period.
Proceeds of the private placement will be used to fund further development of the Company's MAX Molybdenum Project, located 60 kilometres (36 miles) southeast of Revelstoke, British Columbia. Pre-development and pre-construction organizational activities have started at the MAX site and at the mill dismantling site in Washington State.
Roca aims to be the first new primary molybdenum producer in Canada, with production commencing in the fall of 2006. The fast tracked PHASE I mine plan for MAX is permitted and will focus on the deposit's high-grade zone containing 280,000 measured and indicated tonnes grading 1.95% MoS2 (approximately 7.2 million lbs of contained molybdenum). A complete NI 43-101 compliant resource estimate was reported by the Company in September of 2004.
Molybdenum currently trades in the US$25/lb range and is a key alloy in the manufacture of stainless and specialty steel, including pipelines and other energy-related steel infrastructure.
The private placement is subject to due diligence and TSX Venture Exchange approval.
ROCA MINES INC.
"Scott Broughton"
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
Doug Fosbrooke
Investor Relations
Tel: 604-684-2900
Fax: 604-684-2902
Email: [email protected]
Web: www.rocamines.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. |
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