Ashton Mining of Canada Inc.

Ashton Mining of Canada Inc.

March 31, 2006 08:46 ET

Ashton Completes Short Form Prospectus Offering for Gross Proceeds of $15 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Robert T. Boyd, President and CEO of Ashton Mining of Canada Inc. ("Ashton" or the "Corporation") (TSX:ACA) is pleased to report that the Corporation has completed the short form prospectus offering announced on March 8 and March 10, 2006. Pursuant to this transaction, the Corporation has issued 10,714,286 common shares at a price of $1.40 each, for gross proceeds of $15 million.

QIT-Fer et Titane Inc. ("QIT"), an indirect wholly owned Quebec-based subsidiary of Rio Tinto plc, subscribed for 5,539,286 shares under the offering. As a result, QIT holds 15,189,761 of the 49,037,982 common shares of the Corporation that are now beneficially owned by the Rio Tinto group. This figure represents approximately 51.7 percent of the 94,911,661 common shares that are currently issued and outstanding.

GMP Securities LP acted as the lead underwriter for the offering as part of a syndicate whose other members were Canaccord Capital Corporation, Dundee Securities Corporation and National Bank Financial.

Ashton will use the proceeds of the offering to advance the Corporation's ongoing exploration programs in 2006 and 2007, including the 6,000 carat bulk sample program now underway at the Foxtrot property in north-central Quebec, and for working capital and general corporate purposes.

Ashton's prime objective is the discovery or acquisition of diamond prospects capable of rapid advancement to development and production. The Corporation is recognized as one of the leading explorers in the Canadian diamond industry. Ashton's competitive advantages include the significant exploration experience of its key personnel as well as its extensive in-house diamond laboratory facilities in North Vancouver, B.C.

Annual Meeting of Shareholders - April 27, 2006

The 2006 Annual Meeting of Shareholders of Ashton will be held on Thursday, April 27, 2006 at 3:00 p.m. in the Vancouver Room on the 2nd Floor of the Metropolitan Hotel, 645 Howe Street, Vancouver, B.C. The Notice of Meeting and Management Proxy Circular are available on the Corporation's website at Ce document est egalement disponible en francais a la meme addresse.

Contact Information

  • Ashton Mining of Canada Inc.
    Robert T. Boyd
    President and CEO
    (604) 983-7750
    Ashton Mining of Canada Inc.
    Mike Westerlund
    Manager, Investor Relations
    (604) 983-7750