Cadillac Ventures Inc.

Cadillac Ventures Inc.

December 21, 2011 09:00 ET

Cadillac Closes Final Tranche of $3.3 Million Financing and Grants Stock Options

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) -


Cadillac Ventures Inc. (TSX VENTURE:CDC) ("Cadillac" or the "Company") is pleased to announce the closing of the second and final tranche of its previously announced private placement financing (see the Company's news releases dated November 15 and November 24, 2011) (the "Offering") for gross proceeds of approximately $804,400. Together with the first tranche of the Offering which closed on November 24, 2011, Cadillac raised, in aggregate, gross proceeds of $3.3 million pursuant to the Offering.

On closing of the second tranche, Urion Mining International B.V. ("Urion"), an existing shareholder of the Company and an indirect wholly-owned subsidiary of Trafigura Beheer, B.V., was issued 3,830,410 units of the Company ("Units") at a price of $0.21 per Unit. Urion's subscription allowed it to maintain its approximate 25% equity interest in the Company, through the exercise of its pre-emptive right under a pre-existing agreement between the Company and Urion. In total, Cadillac issued 3,830,410 Units and 11,039,196 flow-through units pursuant to the Offering.

Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant (a "Warrant") entitles the holder to purchase one common share of the Company at a price of $0.35 for a period of 24 months following closing.

The Company intends to use the net proceeds from the sale of the Units towards a Preliminary Economic Assessment on the Thierry Property by early 2012, for development of the Company's properties and for working capital purposes.

The securities issued under this second tranche of the Offering are subject to a statutory hold period in Canada expiring on April 21, 2012.

Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the issuance of Units to Urion constitutes a "related party transaction". The Company is exempt from obtaining both a formal valuation and minority shareholder approval in connection with such issuance because neither the fair market value of the common shares and warrants issued to Urion under the Offering, nor the consideration for such securities, exceeds 25% of the Company's market capitalization as calculated in accordance with MI 61-101.

Grant of Options

The Company also announces that that it has granted an aggregate of 1,675,000 options to acquire common shares of Cadillac at an exercise price of $0.20 per share pursuant to its stock option plan. The options granted include 1,400,000 options granted to directors and officers of Cadillac. All options granted will have a term of five years.

About Cadillac

Cadillac is a development-focused copper company currently advancing its 100% owned Thierry Property, near Pickle Lake, Ontario. The Thierry Property consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources: Thierry Mine and K1-1.

Thierry Mine Deposit

The Thierry Mine is a past producing mine with a current resource estimate consisting of 8.3 million tonnes measured and indicated grading 1.73% Cu and 0.20% Ni, and 14.6 million tonnes inferred grading 1.70% Cu and 0.16% Ni, using a cut-off NSR of C$46.30/tonne. The deposit remains open at depth and to the west.

K1-1 Deposit

The K1-1 is a potentially open-pit, large tonnage, low grade deposit located approximately 3 km from the past producing Thierry Mine. The inferred mineral resource estimate for K1-1 within a Whittle pit shell consists of the following 20 million tonnes grading 0.42% Cu, 0.10% Ni, 2.0 g/t Ag, 0.03 g/t Au, 0.05 g/t Pt, 0.15 g/t Pd. The K1-1 Deposit is open along strike and at depth.

Forward-Looking Statements

This news release contains forward-looking statements and information under applicable securities laws, including with respect the Company's anticipated use of proceeds. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as 'may', 'will', 'plan', 'expect', 'believe', 'anticipate', 'estimate', 'intend' and similar words referring to future events and results. Such statements and information are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary approvals (including from the TSX Venture Exchange), licences and permits and the availability of financing, as described in more detail in the Company's securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Forward-looking information speaks only as of the date on which it is provided and Cadillac assumes no obligation to revise or update these forward-looking statements except as required by applicable law. All dollar amounts are in Canadian dollars unless otherwise noted.

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

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