Alhambra Resources Ltd.
TSX VENTURE : ALH

Alhambra Resources Ltd.

September 28, 2010 08:30 ET

Alhambra Closes Oversubscribed Equity Financing for US$8,000,000

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2010) - Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation") is pleased to announce that due to high demand, its recently announced equity private placement has been oversubscribed. Alhambra has closed the balance of its equity private placement of units ("Units") for aggregate proceeds of US$3,365,727 bringing the total to US$8,000,000 from the previously announced US$6,000,000 private placement (see News Releases dated July 30 and August 19, 2010).

For the second and final closing, the Corporation has issued 7,827,270 Units, consisting of 7,827,270 common shares and 3,913,635 share purchase warrants. In aggregate, for this private placement, the Corporation has issued 18,604,650 Units, consisting of 18,604,650 common shares and 9,302,325 share purchase warrants.

The offering was at a price of US$0.43 per Unit. Each Unit is comprised of one (1) common share and one-half (1/2) of a common share purchase warrant of Alhambra. Each whole warrant (the "Warrant") shall entitle the holder to purchase one (1) additional common share of Alhambra at an exercise price of US$0.72 per common share on or before February 19, 2012 for 5,388,690 Warrants and March 27, 2012 for 3,913,635 Warrants. The Units, together with any securities into which the Units will be converted, are subject to a four (4) month hold period expiring on December 19, 2010 for 10,777,380 Units and January 27, 2011 for 7,827,270 Units as per TSX Venture Exchange policies and applicable securities laws. 

Proceeds from this private placement shall be used for further exploration and development of Alhambra's Uzboy Project in Kazakhstan and for general working capital purposes.

For the second and final tranche of the offering, the Corporation paid a cash commission in the amount of US$196,784 bringing to US$474,800, the total amount of cash commission paid for the entire offering.

Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer stated, "We are very happy to announce that we were oversubscribed to our initially announced US$6,000,000 offering. Given the strong demand which we had from investors located primarily in Hong Kong and China, the Corporation concluded that it would be in the best interests of all parties to expand the offering up to US$8,000,000 to accommodate a number of these new investors. As Hong Kong is the gateway to China, which has become the world's largest consumer of resources and energy, we are excited to continue to grow our investor base in this part of the world."

ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production corporation celebrating its eighth year of operations in the Republic of Kazakhstan. Alhambra holds exploration and exploitation rights to a 2.7 million acre (11,000 km2), 100% owned, license called the Uzboy Project, located in the prolific Charsk Gold Belt which hosts numerous world-class gold deposits. Over 100 mineral targets, including 5 advanced exploration plays are contained within the Uzboy Project.

Alhambra common shares trade in Canada on The TSX Venture Exchange under the symbol ALH, in the United States on the Over-The-Counter Market under the symbol AHBRF and in Germany on the Frankfurt Open Market under the symbol A4Y. The Corporation's website can be accessed at www.alhambraresources.com.

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

Contact Information

  • Alhambra Resources Ltd.
    Ihor P. Wasylkiw
    Chief Information Officer
    (403) 508-4953
    or
    Alhambra Resources Ltd.
    Donald D. McKechnie
    Chief Financial Officer
    (403) 228-2855
    www.alhambraresources.com