Cash Minerals Ltd.

Cash Minerals Ltd.

July 11, 2005 16:16 ET

Cash Minerals Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - July 11, 2005) - CASH MINERALS LTD. (TSX VENTURE:CHX) is pleased to announce that it has completed the first tranche of its previously announced brokered private placement through the issuance of 8,701,428 Flow Through Units priced at $0.35 for gross proceeds of $3,045,499.80. Pacific International Securities Inc. acted as agent in connection with the financing and received $182,729.99 in commission as well as broker warrants, entitling it to purchase 522,085 Common Shares at $0.40 until July 11, 2006.

Each Flow Through Unit consisted of one Flow Through Share and one half of one Flow Through Share Purchase Warrant. Each whole Flow Through Share Purchase Warrant entitles the holder to purchase one additional Flow Through Share, at $0.60 until July 11, 2006.

Additionally, the Company completed a non-brokered private placement through the issuance of 250,000 Units priced at $0.30 for gross proceeds of $75,000. Each Unit consisted of one Common Share and one half of one Common Share Purchase Warrant. Each whole Common Share Purchase Warrant entitles the holder to purchase one additional Common Share, at $0.45, until July 11, 2006.

Each of the Flow Through Shares, Flow Through Share Purchase Warrants, Common Shares and Common Share Purchase Warrants are subject to a hold period that will expire on November 12, 2005.

The proceeds of the Offering from the sale of the Units will be used to fund exploration of the Company's coal and uranium assets in the Yukon, and for general corporate purposes, while the proceeds from the sale of the Flow Through Units will be used exclusively for the exploration of the Company's coal and uranium assets.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws an may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registrations is available.


The Division Mountain Coal Project.

The Division Mountain Coal Project lies 20 km west of Highway 2 and Yukon's main power grid, and 290 km from the tidewater port at Skagway, Alaska. The Project is owned 100% by Cash Minerals Ltd and consists of five Coal leases measuring 776.4 hectares and 22 Territorial Coal Exploration licenses covering 360,000 hectares. The exploration area covers 4,017 square kilometres of coal bearing stratigraphy.

A recently completed NI 43-101 Report on the Project by Norwest Group confirmed a Measured & Indicated (M&I) Resource of 51.6 million tones of coal. A subsequent scoping study, also completed by Norwest, indicated that the Project is potentially viable. Cash is conducting exploration work, geologic and economic studies and wide ranging environmental surveys in anticipation of application for mining permits. A full bankable feasibility study by Norwest is in progress and is scheduled for completion by September 2005.

Uranium Exploration

In addition to the Division Mountain Coal Project, the Company also has a right to earn an interest in six significant uranium projects in Yukon Territory, including four in the Wernecke Mountain area of northeastern Yukon. These uranium projects are hosted in Proterozoic age iro-oxide rich breccia bodies that share numerous textural and mineralogical similarities to the IOCG deposit (Iron-Oxide-Copper-Gold) model, which include Olympic Dam, Ernest Henry and Candelaria. Two uranium properties, (one in west-central and one in southeastern Yukon), are both hosted in Cretaceous granitic intrusions and are best viewed as bulk tonnage uranium targets, modeled on the Rossing Deposit in Southern Africa. All of the uranium projects have considerable existing data as they were aggressively explored by majors in the late 1970s and early 1980. A 2,800 metre drill program of approximately 24 holes is currently in progress on four of the Uranium properties in Yukon.

Cash Minerals Ltd. ( is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX". The Company has approximately 24.2 million shares outstanding.


Contact Information

  • Cash Minerals Ltd.
    Basil Botha
    President & C.E.O.
    Cash Minerals Ltd.
    David Meyer
    Business Consultant