Alexandria Minerals Corporation
TSX VENTURE : AZX
FRANKFURT : A9D

Alexandria Minerals Corporation

April 18, 2007 09:29 ET

Alexandria to Raise $5,500,000; Second Rig Expands Drilling Program Along Cadillac Break

TORONTO, ONTARIO--(CCNMatthews - April 18, 2007) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) announces a brokered private placement (BPP) with Fraser Mackenzie Limited, for up to 6,250,000 non flow through units (NFT) at a price of $0.32 per unit and up to 5,263,157 flow through units at a price of $0.38, and a non-brokered private placement (NBPP) with MineralFields Group of Toronto, for up to 3,947,368 flow-through units at a price of $0.38 per unit, resulting in gross proceeds of up to $5,500,000.

Each non-flow through unit will be comprised of one non-flow-through common share of the Company and one-half of one warrant, with each whole warrant entitling the holder to acquire one additional non-flow-through common share of the Company at a price of $0.48 for a period of one year from closing.

Each flow-through unit shall be comprised of one flow-through common share and one-half of one warrant, with each whole warrant entitling the holder to acquire one additional non-flow through common share of the Company at a price of $0.48 for a period of one year from closing.

The proceeds from the private placement will be used for exploration activities on its Ontario and Quebec mineral properties and for general working capital. Exploration will consist primarily of drilling-related activities, with focus on the Company's Cadillac Break properties in the Val d'Or area, Quebec. Alexandria plans an initial 10,000 m Phase 1 program to expand on the recent success in the Orenada #4 area, where the company intersected 21.37 g/t gold over 4.05 m (announced March 29, 2007), to be followed by a further 10,000 m program pending results.

Currently, the company has two drill rigs operating on its properties along the Cadillac Break in Quebec (Figure 1). The company has begun drilling on the Sleepy Zone, the second of four historic gold deposits on the Company's Cadillac Break properties, southeast of Val d'Or, which Cambior Inc. (now IAMGOLD Corporation) discovered in the late 1980's (see Press Release April 10, 2007).

NOTE: To view "FIGURE 1. Current drilling locations and Alexandria properties from Val d'Or to Noranda, Quebec.", please click the following link: http://www.ccnmatthews.com/docs/azx0418.pdf

The Company has also begun drilling on its Joannes Property, located about 50 km west of Val d'Or along the Cadillac Break. Historic drill holes on the property have yielded up to 28.5 g/t gold over 1.5m and 12.00 g/t gold over 1.5m. Alexandria has completed geophysical surveys on the property to augment the drill targets, and plans to drill 3 first phase holes testing targets along the Cadillac Break and satellite fault zones.

The Joannes property is located in a region of the Cadillac Break that has seen considerable gold mining success over the years, including the Bousquet Mine (3.0 million ounces of gold produced), Agnico Eagle's La Ronde Mine (reserves of 5.3 million ounces of gold). Recent discoveries at Lapa (Agnico Eagle), Wood-Cadillac (Queenston-Globex), and the Aurizon Mines Joanna property adjacent to Alexandria's property all attest to the potential of the region.

The closing of the private placement is expected to occur on or before May 3, 2007, and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to the offering shall be subject to a hold period of four months from the date of closing.

In connection with the financing, an agent's fee of 7% of the gross proceeds raised in the BPP will be paid to Fraser Mackenzie, and a finders fee of up to 5% for the NBPP will be paid to MineralFields. In addition, up to 7% brokers warrants will be issued to Fraser Mackenzie for the BPP and to MineralFields for the NBPP.

Alexandria Minerals Corp. is a Toronto-based mineral exploration and development company, currently focused on the exploration for precious metals on mineral properties located in Northern Ontario and Quebec. The Company's management has extensive global experience with small to large mining companies, from grass-roots exploration to the exploitation of mineral deposits. The Company is a reporting issuer in the provinces of British Columbia, Alberta and Ontario.

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.

WARNING: The Company relies upon litigation protection for "forward-looking" statements. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Alexandria Minerals Corporation relies upon litigation protection for forward-looking statements.

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

Contact Information

  • Coal Harbor Communications
    Dale Paruk
    (604) 662-4505 or Toll Free: 1-877-642-6200
    (604) 662-4547 (FAX)
    Email: dale@coal-harbor.com
    or
    Alexandria Minerals Corporation
    Mr. Eric Owens
    (416) 363-9372
    Email: info@azx.ca
    Website: www.azx.ca