🕐11.11.10 - 05:27 Uhr

AusAmerican Mining [ASX: AIW] - $5.64 million capital raising completed



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AusAmerican Mining [ASX: AIW] - $5.64 million capital raising completed

Australian-American Mining Corporation Limited (ASX: AIW) has finalised a share placement to sophisticated and otherwise exempt investors which has raised $5.64 million before fees.



The company will also be undertaking a Share Purchase Plan (�SPP�) which could raise up to $3 million for a total raising of $8.64 million before fees.

The placement terms were 6 cents per share with two tradable options (ASX code: AIWO) included for every three shares purchased.

Highlights:

� The placement to sophisticated and otherwise exempt investors, intended to raise $4.5 million and managed by DJ Carmichael, was well oversubscribed.

A total of $5.64 million raised before costs
� Approximately 40% of the placement was taken up by North American investors who are clients of Paradigm Capital Inc of Toronto, Canada
� Shareholders recorded on 15 October 2010 will be able to participate in a Share Purchase Plan (�SPP�) to be lodged today on the same terms as the placement.

Up to $3 million could be raised through the SPP
� The company has given notice to Springtree Special Opportunity Fund LP (�Springtree�) of the termination of the Convertible Note Agreement
� Funds will allow the company to continue on its aggressive exploration programme which has recently commenced and includes (i) Drilling at its four brown field uranium projects (ii) exploration and drilling its specialty metal and rare earth projects in Arizona, (iii) drilling at its Bernard gold project; and (iv) further project acquisition

The company was pleased by the strong support of the placement - particularly from North American investors, who took up approximately 40% of the placement.

This was placed to clients of Paradigm Capital Inc of Toronto, Canada.

Funds raised will be used to do the following:

1.

Continue the drilling programme at the company�s four brown field uranium projects in Nevada, New Mexico and Texas.

The company hopes to increase its current resource significantly at these projects as a result of this drilling (i).

This drilling programme will include more than 7,500 metres of drilling, has commenced and is expected to continue until May 2011.
2.

Finalise the acquisition, exploration and drilling of the company�s specialty metal and rare earth projects in Arizona.
3.

Drill the Bernard gold project; and
4.

Allow the company to continue its acquisition of uranium, rare earth, specialty metal and gold projects in the USA.

See more in the attached announcement.

Further information, please contact:

Jim Malone
+61 419 537 714


Investor and Media Enquiries:
Fortbridge: +61 2 93310655
Bill Kemmery: +61 400 122 449

Luke Dean: +61 414 535 433



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