Rocmec Mining Inc.

Rocmec Mining Inc.

October 16, 2007 18:37 ET

Rocmec Closes An $850,000 Financing With Industrial Alliance Securities Inc.

POINTE-CLAIRE, QUEBEC--(Marketwire - Oct. 16, 2007) - Rocmec Mining inc. (the "Company")(TSX VENTURE:RMI)(FSE:D5O) subject to the approval of the TSX Venture stock exchange, announces that it has closed an $850,000 financing with Industrial Alliance Securities Inc. Priced at 0.18 per unit, each unit is comprised of 0.88 flow-through common share, 0.12 non flow through common share and one transferable common share purchase warrant. Each common share purchase warrant is exercisable into one common share of the Company for a period of two years from closing at an exercise price of $0.30 for the first twelve months and $0.35 for the last 12 months.

Industrial Alliance Securities Inc. will obtain a cash finder's fee from the Company equal to 10% of the aggregate gross proceeds, a share certificate equal to five percent (5%) of the total number of units issued along with finder's warrants equal to five percent (5%) of the number of units subscribed for. The warrants are issued under the same terms as the warrants issued to the subscribers.

All the securities issued in virtue of this placement are subject to certain resale restrictions imposed under the applicable securities laws, which require that the securities not be traded for a period of four months.

The proceeds from the sale of the flow-through units will be used by the Company for underground development of its Rocmec1 project located in Rouyn-Noranda, Quebec.

Subject to the approval of the TSX Venture Exchange, Rocmec announces that it will proceed with the issuance of 68,182 common shares in payment of the interest in accordance with the terms and conditions of the unsecured convertible debenture issued to Fonds regional de solidarite Abitibi-Temiscamingue, s.e.c. in March 2006.

About Rocmec 1

The Rocmec 1 property is located in the Dasserat Township, some 36 km west of Rouyn-Noranda (Quebec) in the Abitibi region of Quebec, in close proximity to two World-Class Mining Camps, the Rouyn-Noranda Copper Gold Camp to the SE in Quebec, and the Kirkland Lake / Larder Lake Gold Camp to the SW in Ontario.

The gold mineralization at the Rocmec 1 property is linked to E-NE, centimetric and metric wide quartz veins within a kilometric long by 600 m wide gabbro to granodiorite intrusive host. There are at least six major vein systems identified on the property; however, recent underground work by the Company has confirmed that several veins are likely part of the same system, simply offset by north trending faults. The veins are part of diverging / converging or an anastomosing fracture system than includes shearing, alteration (silica, chlorite, sericite, epidote and carbonate) and 2 to 10% disseminated and vein-type pyrite that can attain overall widths in excess of 30 m.

The best known vein system is termed the McDowell Zone that may include three different vein sets, and has been recognized over a 1,650 meter long strike length, to a 320 meter depth, carrying an average of 6.07 g/t gold over a 0.82 meter horizontal width.

A technical report (dated March 19, 2007), compliant with National Instrument (NI) 43-101 standards of disclosure, was prepared by Systemes Geostat International Inc. of Blainville (Quebec) identified mineral resources of 521,800 tonnes @ 5.15 g/t gold (86,550 ounces of gold) in the Measured and Indicated Resources category. There is an additional 2,250,000 tonnes @ 6.32 g/t gold (456,900 ounces of gold) in the Inferred Resources category.

About Rocmec Mining

Rocmec Mining Inc. is a Canadian junior exploration company actively involved in the acquisition, exploration and development of precious metal projects. The Company's exclusive thermal fragmentation process combined with its growth strategy places it as the partner of choice for the development of narrow high-grade precious metal quartz vein projects. The Company's shares are listed on the TSX-Venture (RMI) and the FSE (D5O) exchange. The company's growth strategy is to focus on the development of quality assets that will significantly enhance shareholder value.

"Thermal fragmentation - the way of the future for mining narrow high-grade veins "

The development and mining of narrow high-grade vein deposits with its exclusive thermal fragmentation process should enable the Company to demonstrate the economic plus-value of this technology. The acquisition, exploration and mining development at the recently acquired Rocmec 1 (Russian Kid) property subscribe to this objective.

Statements in this release that are not historical facts are " forward-looking statements " within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those in these "forward-looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Rocmec Mining Corporation Inc.
    Mr. John Stella
    Manager Investor Relations
    514-630-6989 (FAX)
    514-718-7976 (cell)
    Paradox Investor Relations
    514-341-1527 (FAX)