🕐03.01.11 - 18:27 Uhr
ARMISTICE RESOURCES CLOSES FIRST PART OF EQUITY OFFERING
*PRESS RELEASE
ARMISTICE RESOURCES CORP.
For Immediate Release
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*Armistice Resources Closes First Part of Equity Offering*
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Financing provides funding for exploration on the McGarry and
Kerr-Addison properties, and on additional possible property acquisitions
Toronto, ON December 31, 2010 Armistice Resources Corp.
(TSX: AZ)
today announced that it has closed the first tranche of the planned
private-placement equity offering that it announced on December 21,
2010.
In the first closing, Armistice has issued a total of 6,190,000
flow-through shares at $0.50 per share for gross proceeds of
approximately $3,095,000.
As previously announced, the offering is intended to raise gross
proceeds of up $6 million and is being made on a best-efforts basis.
D&D
Securities Inc.
(D&D) is acting as the lead agent for a syndicate that
includes Northern Securities Inc.
The total offering is planned to
consist of approximately 8,286,111 units at $0.45 per unit and up to
approximately 6,250,000 flow-through shares at $0.50 per share.
Each
unit will comprise one common share and one-half of one warrant.
Each
whole warrant will be exercisable into one common share at a price of
$0.55 for a period of 18 months from the closing date of the offering.
The second tranche is expected to close early in January 2011.
The overall financing will provide Armistice funding to move its McGarry
Mine gold project into production in 2011 and also will provide the
company with the flexibility to acquire additional property and to
launch a significant exploration program on both the McGarry property
and the adjacent Kerr-Addison property for which it has signed a
definitive five-year option agreement for the purchase of up to 100
percent of the mineral rights.
*About Armistice Resources Corp.*
Armistice Resources, a Canadian-based exploration and development
company, expects to begin gold production in 2011 from its McGarry Mine
in the Kirkland Lake area of northeastern Ontario.
The McGarry Mine is
located in Virginiatown on the prolific Larder Lake-Cadillac Break that
extends 200 km east-west straddling the Ontario and Quebec border and
that has produced 95 million ounces of gold.
The McGarry Mine is
adjacent to the Kerr-Addison Gold Mine that has produced more than 11
million ounces of gold.
The McGarry Mine consists of 33 contiguous
patented mining claims, including three licenses of occupation, totaling
484 hectares.
The McGarry Mine is fully permitted and all equipment and
systems at the site have been brought up to standards, including its
installed mining plant.
Armistice Resources is listed on the Toronto
Stock Exchange (Symbol: AZ) and currently has 86,836,899 common shares
issued and outstanding.
To find out more about Armistice Resources,
please visit the companys website at www.armistice.ca.
*Forward-Looking Statements*
This news release contains forward-looking statements, including
completion of the equity offering and current expectations on the timing
of the commencement of production.
These forward-looking statements
entail various risks and uncertainties that could cause actual results
to differ materially from those reflected in these forward-looking
statements.
Such statements are based on current expectations, are
subject to a number of uncertainties and risks, and actual results may
differ materially from those contained in such statements.
These
uncertainties and risks include, but are not limited to, the strength of
the Canadian economy; the price of gold; operational, funding, and
liquidity risks; the degree to which mineral resource estimates are
reflective of actual mineral resources; the degree to which a
pre-feasibility study gives sufficient grounds for classifying the
indicated mineral resources as probable reserves; and the degree to
which factors which would make a mineral deposit commercially viable are
present; the risks and hazards associated with underground operations.
Risks and uncertainties about Armistice Resources business are more
fully discussed in the companys disclosure materials, including its
annual information form and MD&A, filed with the securities regulatory
authorities in Canada and available at www.sedar.com and readers are
urged to read these materials.
Armistice Resources assumes no obligation
to update any forward-looking statement or to update the reasons why
actual results could differ from such statements unless required by law.
//
For further information:
Investor and Media Relations
Richard W.
Wertheim
Wertheim + Company Inc.
Email:
416-594-1600 ext.
223
416-518-8479 (cell)