First Point Minerals Corp.

First Point Minerals Corp.

March 29, 2010 08:51 ET

First Point Proposes a $5 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2010) -


First Point Minerals Corp. (TSX VENTURE:FPX) ("First Point") announces that it has arranged for a private placement of up to 10,000,000 units at a price of $0.50 per unit, for gross proceeds of up to $5 million.

"The net proceeds raised will be used to advance First Point's 100% owned nickel alloy properties in North America as well as international exploration for additional properties and for general corporate purposes," said Peter Bradshaw, President and CEO. "In addition to the Decar property, which is under option to Cliffs Natural Resources (Cliffs), First Point has five nickel properties in British Columbia and one in Oregon that require detailed surface exploration followed by geophysical surveys depending on initial results. Nickel-iron alloy showings occur on three of these properties indicating significant exploration potential. Using proprietary technical methods First Point is expanding its exploration activities by evaluating and acquiring other nickel alloy targets in other parts of the globe. In addition, a 1200 meter drill contract has been signed to test a gold Carlin-type setting on the Corralitos Project in Mexico. The drill program will be completed in April-May and, if results are positive, the program will be expanded."

On the Decar project current work includes studies on metallurgical recoveries, using the existing samples, to define the most effective method for recovery of the nickel-iron alloy. Within the next four to six weeks, the 2010 spring field season will commence, starting with geophysical surveys and detailed mapping and sampling followed by drill testing of the most significant targets. Drill core will provide data respecting the continuity of the grade and grain size of the alloy and more importantly provide higher grade samples for metallurgical testing. The work at Decar is funded by Cliffs under the terms of the option agreement that combines exploration management by First Point and metallurgical testing by Cliffs.

The private placement will consist of one common share and one-half of a non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase, for a period of two years from the closing of the private placement (the "Closing"), one common share at a price of $0.65 per share for the first year and $0.80 per share for the second year.

The warrants will contain a provision that will enable First Point to force exercise of the warrants if, during the term of any unexercised warrant commencing four months after the Closing, the common shares of the Company trade on any exchange for a period of 20 consecutive trading days at a price of $1.10 per share or greater.

Cliffs has stated its intention to subscribe for 15% of the issue as is its right under the Decar property option agreement, as previously announced.

First Point may pay a finder's fee or commission and issue non-transferable broker warrants in connection with the private placement in accordance with policies of the TSX Venture Exchange.

Any participation by insiders of First Point in the private placement, which participation will be subject to the approval of independent directors of the Company, will be on the same terms as arm's length investors, and such insiders shareholdings in the Company will increase as a result of any such participation. The private placement may close before 21 days following the filing of the material change report regarding this announcement if management determines it necessary or desirable for sound business reasons.

This press release, required by applicable Canadian laws, 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 unless registered or exempt therefrom.

Closing, which is subject to acceptance of the TSX Venture Exchange, is expected to occur on or about April 19, 2010. The units issued by way of private placement exemptions from prospectus requirements will be subject to a four-month hold.

First Point Minerals Corp. is a Canadian base and precious metal exploration company.

On behalf of First Point Minerals Corp.

Peter Bradshaw, Ph.D., P.Eng., President & CEO

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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