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| | Thu Jan 7, 2010
Franconia Minerals Announces $3 Million Private Placement Financing
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| | Thursday, January 7, 2010 -- (TSX: FRA) Franconia Minerals Corp. ("Franconia"or the "Company") is pleased to announce that it has entered into an agreement with Wellington West Capital Markets Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase as principal for resale 3,340,000 special warrants ("Special Warrants") at an issue price of $0.45 per Special Warrant by way of private placement for gross proceeds to Franconia of approximately $1.5 million (the "Offering"). All references to dollar amounts in this news release are in Canadian dollars.
Franconia has also granted the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 3,340,000 Special Warrants, for additional gross proceeds of up to approximately $1.5 million, for total aggregate gross proceeds of approximately $3.0 million. The Underwriters' Option is exercisable in whole or in part up until 24 hours before the closing of the Offering.
Each Special Warrant will be automatically exercised for one Unit (the "Units") of Franconia for no additional consideration following the receipting of a final prospectus qualifying the issuance of the Units on exercise of the Special Warrants. Each Unit consists of one Common Share and one half of one Common Share purchase warrant. Each full warrant is exercisable into one common share at a price of $0.70 for a period of 12 months from the closing date. The Company will use its best efforts to obtain a receipt for a final prospectus within 45 days of closing of the Offering which will qualify for sale the Common Shares underlying the Special Warrants issued pursuant to the Offering. In the event that such date is not met by Franconia, each Special Warrant will thereafter entitle the holder thereof to receive, at no additional cost, a Unit that will consist of 1.1 Common Shares and 0.55 Common Share purchase warrants. All Special Warrants not previously exercised will be automatically exercised for Units four months and one day following the closing date.
Franconia plans to use the net proceeds from the Offering to advance its Birch Lake deposit in Minnesota and general corporate purposes.
The Offering of Special Warrants is scheduled to close on or about January 28, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX.
This news release is not an offer of Special Warrants for sale in the United States. The Special Warrants, Units, the Warrants and common shares issuable on exercise of the Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
About Franconia Minerals Corporation (TSX: FRA): Franconia is currently focused on the development of the Birch Lake copper-nickel-platinum-palladium project - consisting of the Birch Lake, Maturi and Spruce Road deposits - in the highly prospective Duluth complex in northeastern Minnesota. The recently updated NI 43-101 report estimates an Indicated Resource of 131.2 million tonnes, plus an Inferred Resource of 37.5 million tonnes for the Birch Lake deposit (see news release dated September 23, 2009). Underground mining at Birch Lake will minimize the surface impact of the operation. Also, storage of mine wastes underground would further minimize the surface impact. Additional resources at the Birch Lake project include Inferred Resources at the Maturi deposit (see news release of September 6, 2006) and at the Spruce Road deposit (see news release of December 3, 2007). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at www.SEDAR.com and www.franconiaminerals.com.
Franconia Minerals Corporation trades on the TSX under the symbol FRA and currently has 59,082,572 shares issued and outstanding.
In the US: Douglas Sherk: 415 896 6820
dsherk@evcgroup.com
In Toronto: Greg Taylor: 905 337 7673
gtaylor@franconiaminerals.com
In Vancouver: Farah Alibhai: 604 731 7340
info@franconiaminerals.com
FORWARD LOOKING STATEMENTS:
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based included that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Franconia and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the annual information form of Franconia dated December 21, 2009 and in the annual Management's Discussion and Analysis for Franconia filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Franconia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Franconia undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
The TSX has neither approved nor disapproved the contents of this press release.
THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS. |
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| | You can view the Next News Releases item: Mon Jan 11, 2010, Franconia Minerals Announces Increase In Private Placement To Up To $4.23 Million
You can view the Previous News Releases item: Thu Nov 12, 2009, Franconia Launches Waste Characterization Studies at Birch Lake Copper-Nickel-PGM Project
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