Queenston Announces $22.5 Million Financing
TORONTO, ONTARIO -- (Marketwire) -- 09/13/11 -- QUEENSTON MINING INC. (TSX: QMI)(FRANKFURT: QMI) ('the Company' or 'Queenston') announced today that it has entered into an agreement with Primary Capital Inc., as lead agent and including Dundee Securities Ltd., Stifel Nicolaus Canada Inc. and Stonecap Securities (collectively, the 'Agents') in connection with the offering of 3 million 'flow-through shares' of Queenston at a price of $7.50 per share for gross proceeds of $22,500,000. The financing is on a private placement guaranteed basis and there is an option to increase the offering by up to 333,333 flow-through shares ($2,500,000). The Flow-Through shares will be offered by way of private placement to accredited investors in the Province of Ontario.
The proceeds from the financing will increase the Company's working capital to approximately $85 million and will be used to continue with its high level of exploration and development of gold projects located in Kirkland Lake, Ontario. The private placement is scheduled to close on or about September 27, 2011 and is subject to regulatory approval including approval by the Toronto Stock Exchange.
Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp that comprises 230 km2. Late in 2010 the Company entered into a strategic alliance with Agnico-Eagle Mines Limited with the objective of advancing its key, 100% owned gold projects (Upper Beaver, Upper Canada, McBean, Anoki and Bidgood) at the Kirkland East project towards feasibility and ultimately production. The Company is completing a fiscal 2011 exploration budget of $25 million and intends to maintain this level of expenditure in 2012.
Forward Looking Statements
Except for historical information this News Release may contain certain 'forward looking statements'. These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the 'Annual Information Form' filed by the Company on SEDAR at www.sedar.com.
Contacts:
Queenston Mining Inc.
Charles E. Page, P. Geo.
President and CEO
(416) 364-0001 (ext. 224)
Queenston Mining Inc.
Hugh D. Harbinson
Chairman
(416) 364-0001 (ext. 225)
Queenston Mining Inc.
Andreas Curkovic
Investor Relations
(416) 577-9927
Queenston Mining Inc.
Ann Gibbs-Baines
Investor Relations
(416) 627-8872
Info@queenston.ca
www.queenston.ca