| ||Thu Jan 15, 2009|
Roca to Complete Working Capital Financing
| ||Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or the "Company") announces that it will be completing a non-brokered private placement for proceeds of $1 million through the issuance of 4,000,000 units at a price of $0.25 per unit. Proceeds from this financing will be used for general working capital.|
Each unit will consist of one common share of Roca and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $0.35 for 24 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.
As a result of the rapid decline in molybdenum prices, operating cash-flows from sales completed in the first quarter ended November 30, 2008 were approximately $12 million lower than forecasted. The Max molybdenum mine restarted production on January 8, 2009 and the Company remains cash-flow positive at today's molybdenum prices, however, the unscheduled shutdown has resulted in an immediate need for a working capital injection.
The Phase I mine plan for MAX Molybdenum Mine is focused 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 oxide currently trades in the US$9.50/lb. range.
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.
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