Probe Mines Limited
TSX VENTURE : PRB

Probe Mines Limited

February 03, 2010 11:05 ET

Probe Mines Announces Closing of $250,000 Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) - The Directors of Probe Mines Limited (TSX VENTURE:PRB) ("Probe") are pleased to announce the closing of the recently announced private placement financing for gross proceeds of $250,000 consisting of the sale of 500,000 Units sold at $0.50 per Unit. Each Unit consists of one common share and one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.75 for a period of two years after closing. All securities will be subject to a hold period of four months.

Proceeds of the financing will be used to continue the Corporation's exploration efforts in the McFauld's Lake area, as well as for working capital and new project acquisitions. Probe is currently evaluating exploration programs for the 2010 season on all of its McFauld's assets, including the Probe-Noront Resources Joint Venture claims and the 100%-owned Tamarack, Victory and McFauld's West Projects.

The private placement was completed with Pinetree Resource Partnership ("Pinetree") which currently owns 4,500,000 common shares of Probe representing 13.4% of the 33,566,472 issued and outstanding common shares. Upon closing of the proposed financing, Pinetree owns 5,500,000 common shares of Probe on a fully diluted basis representing 14.1% of the issued and outstanding common shares. The private placement by Pinetree was unanimously approved by the directors of Probe who are all arm's length to Pinetree. The private placement by Pinetree is a "related party transaction" as defined by Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions ("MI 61-101") under applicable securities laws as Pinetree holds more than 10% of the issued and outstanding shares of Pinetree. However, Probe is exempt from the valuation and minority approval requirements of MI 61-101 for related party transactions because the fair market value of the private placement is not more that 25% of the market capitalization of Probe.

About Probe Mines:

Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $4.2M in treasury and a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 931 claims covering almost 15,000 hectares, including joint venture properties with Noront Resources covering 87 of these claims. Probe currently has an option-joint venture agreement with Lake Shore Gold Corp on its Bristol Township gold project adjacent to Lake Shore's million-plus ounce gold deposit. Recent exploration results from Lake Shore include an 83.4m intersection grading 12.75 g/t gold less than one kilometre from Probe's claims. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, which began production in 2008. The Company has only 34,066,472 shares issued and outstanding, which trade on the TSX Venture Exchange under the symbol PRB.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at www.probemines.com.

Forward-Looking Statements

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, 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 form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.

Shares Issued: 34,066,472

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Probe Mines Limited
    David Palmer
    President
    (416) 777-6703
    or
    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    (866) 365-4724
    www.probemines.com