New Millennium Capital Corp.

New Millennium Capital Corp.

October 06, 2005 18:53 ET

New Millennium Capital Corp. Announces First Closing of Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 6, 2005) -

New Release #05-16

New Millennium Capital Corp. (TSX VENTURE:NML) ("NML") is pleased to announce that the first closing of the private placement previously announced on September 8, 2005, has been completed for total gross proceeds of $5,055,000. The Corporation issued 8,000,000 common shares on a flow-through basis (the "Flow-Through Shares") at a price of $0.50 per share and 2,110,000 common share units (the "Common Share Units") at a price of $0.50 per Unit. Each Common Share Unit consists of one common share (a "Common Share") and one-half common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one Common Share at a price of $0.75 for a period of 24 months following closing of the Financing. Each Flow-Through Share consists of one Common Share issued as a "flow-through share" within the meaning of the Income Tax Act (Canada). The net proceeds from the first closing of the Financing will be used to fund the Corporation's 2005 drilling and bulk sampling program on the LabMag Iron Ore Project and to fund its pre-feasibility engineering, base-line environmental and marketing studies and for general working capital purposes.

The Corporation and the Agents expect that a second closing of Common Share Units will be completed by the end of October 2005. The maximum additional Common Share Units that may be issued is 3,890,000 ($1,945,000).

As consideration for their services in connection with the Financing, Investpro Securities Inc. and Raymond James Ltd. (collectively, the "Agents") received an agency fee of $15,000, a marketing commission of 7% of the gross proceeds of the Financing and Agents' Warrants permitting the Agents to purchase Common Shares representing a number equal to 10% of the Common Share Units and Flow-Through Shares issued pursuant to the Financing, exercisable at a price of $0.50 for a period of 18 months following closing of the Financing.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of adequacy of this release.

Contact Information

  • New Millennium Capital Corp.
    Robert Martin
    President and Chief Executive Officer
    (514) 935-3204
    New Millennium Capital Corp.
    Dean Journeaux
    Project Director
    (514) 935-3204