Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

August 25, 2009 06:52 ET

Lysander Announces C$3 Million Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lysander Minerals Corp. (TSX VENTURE:LYM) (the "Company") is pleased to announce that it has entered into an agreement with GMP Securities L.P. ("GMP") in connection with a "best efforts" private placement offering (the "Offering") consisting of up to 15,000,000 units (the "Units") at a price of C$0.20 per Unit for aggregate gross proceeds of up to C$3,000,000.

Each Unit will consist of one common share (a "Common Share") of the Company and one half of one common share purchase warrant (each whole warrant, a "Warrant") with each Warrant entitling the holder thereof to purchase one Common Share of the Company at the exercise price of C$0.30 per Common Share for a period of 24 months following the closing of the Offering.

The Company expects to close the Offering on or about September 15, 2009, subject to applicable regulatory approvals. All securities issued as part of this placement will be subject to a four-month hold period from the closing date.

It is intended that the net proceeds received by the Company under the Offering shall be used for costs related to the care and maintenance of the Verticalnaya anthracite mine currently under option by the Company while the Company pursues the necessary approvals in connection with completing the acquisition and assesses development plans for the mine and for general working capital. In the event that the Company is unable to obtain the requisite approvals (including shareholder and regulatory approval) in connection with the acquisition of the Verticalnaya anthracite mine, the net proceeds of the Offering will be used by the Company for other resource investments and for general working capital.

On behalf of the Board,

Bryce M.A. Porter, President and CEO

About Lysander

Since the spin-out of its Lorraine-Jajay copper-gold project to Lorraine Copper Corp. (TSX VENTURE:LLC) in April 2008, Lysander's declared strategy is to seek advanced resource projects with potential for exceptional returns, without geographical limitations. It has focused on energy, commencing with options to acquire the Verticalnaya anthracite coal project in the Donbass Coal Basin of the Ukraine.

In September 2008, a NI 43-101 technical report on the Verticalnaya mine was prepared on behalf of Lysander and is available on SEDAR (www.sedar.com) and the Company's website. A technical report on a possible satellite operation north of Verticalnaya mine is currently in preparation.

The Verticalnaya coal mine is situated in the Lugansk region of the Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It is on care and maintenance after a period of low production following the break-down of the Soviet Union.

Please visit our website at www.lysanderminerals.com for further information.

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lysander Minerals Corporation
    Bryce M.A. Porter
    President and CEO
    (604) 681-8069
    (604) 685-4675 (FAX)
    www.lysanderminerals.com