|Fri Feb 9, 2007|
Roca Closes $7 million Financing
| ||Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca") announces that, it has closed the final tranche of the private placement announced December 21, 2006 for additional gross proceeds of $4.44 million upon the issuance of 3,171,429 units. |
Each unit consists of one common share and one share purchase warrant with each warrant entitling the holder to acquire an additional common share until August 9, 2008 at a price of $2.25. All securities are subject to a hold period expiring on June 10, 2007. Finder's fee totalling $326,250 were paid and 18,750 warrants (with the same terms as the subscribers' warrants) were issued in connection with the second tranche.
Sprott Asset Management subscribed for a total of $4 million and Front Street Capital subscribed for $2 million of the $7 million financing. Proceeds from this financing will be used for the continuation of Roca's fast-track development plans of the Max Molybdenum Mine.
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 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.
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