Elemental Announces Proposed Capital Raising

PERTH, Australia, Nov. 20, 2012 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to announce a proposed private placement offering of ordinary shares (the "Placement").

The Placement will be conducted pursuant to the Company's available 15% placement capacity through the issue of up to 36,542,142 ordinary shares.  The Company also intends to implement a share purchase plan ("SPP") to enable existing shareholders in qualifying jurisdictions to subscribe for Elemental shares at the same price as the Placement.

The Placement is being undertaken on a combined non-underwritten brokered basis with BMO Capital Markets, Renaissance Securities (Cyprus) Limited and National Bank Financial. The Placement will be priced in the context of the market.

Elemental plans to use the net proceeds from the financing to maintain appropriate levels of capital for study costs, exploration and resource definition, working capital and general corporate purposes.

It is expected that trading in Elemental's shares will be temporarily halted on the Australian Securities Exchange pending finalisation of the terms of the Placement.

The Placement is subject to certain conditions precedent including, but not limited to, provision of appropriate broker and placement documentation and conditional approval of the Toronto Stock Exchange.

A further announcement regarding the Placement will be made separately when final details are available. Information regarding the SPP will be announced shortly.

About Elemental Minerals

Elemental Minerals Limited is an advanced mining exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project on the Republic of Congo coastline.  Elemental Minerals is dual listed on the Australian Stock Exchange and the Toronto Stock Exchange under the symbol ELM. For more information, visit www.elementalminerals.com

"Forward-Looking Statements:

This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance.

Statements in this press release regarding the Company , which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as to completion of the capital raising described herein including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

SOURCE Elemental Minerals Limited