|Thu Aug 10, 2006|
ROCA -- MAX Molybdenum Project Financing
| ||Vancouver, British Columbia: Roca Mines Inc. ("Roca" or the "Company") announces that it has arranged a non-brokered private placement for proceeds of $5 million through the issuance of 7,042,254 common shares at a price of $0.71 per share. No warrants will be issued to subscribers in connection with this offering and the shares 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 certain of the placees. |
Roca and Salman Partners Inc. have elected not to proceed with the brokered private placement announced on May 11, 2006.
The Company has received proceeds of over $5 million since March 2006 from private placements, tax refunds and warrant exercises. These funds have allowed Roca to proceed with its fast-track development plans at the Max Molybdenum Mine. The project has advanced significantly since construction commenced in May and remains largely on budget and on schedule. Estimated project completion costs have been reduced to approximately $5 million and Roca's management team will continue to refine this estimate in the coming months and make further financing announcements if required.
Roca plans to be the first new primary molybdenum producer in Canada, with production to commence in the fall of 2006. The fully-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$25.00/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.
David J. Skerlec -- Chief Financial Officer
For further information contact:
Email: [email protected]
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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