|Thu Dec 21, 2006|
Roca MAX Molybdenum Project 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 up to $7 million through the issuance of 5,000,000 units at a price of $1.40 per unit. |
The units will each consist of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire an additional common share for a period of 18 months following closing at a price of $2.25. 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. This financing is subject to regulatory approval.
Proceeds from this financing will be used for the continuation of Roca's fast-track development plans of the Max Molybdenum Mine. Roca is concentrating on expanding underground mine production and accelerating assembly of the second mill circuit. Expansion of these two key elements will provide tremendous surplus capacity and scheduling flexibility for the project.
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$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.
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: Fri Jan 5, 2007, Roca Closes First Tranche of Financing
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