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| | Thu Jan 15, 2009
Roca to Complete Working Capital Financing
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| | 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 Broughton"
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
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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