Cline Mining Corporation
TSX : CMK

Cline Mining Corporation

May 16, 2011 15:37 ET

Cline Mining Corporation Announces $75 Million Equity Offering

TORONTO, ONTARIO--(Marketwire - May 16, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

CLINE MINING CORPORATION (TSX:CMK) ("Cline" or the "Company") announced today that it has entered into an agreement to sell 27,280,000 common shares on a bought deal basis at a price of $2.75 per common share to a syndicate of investment dealers led by TD Securities Inc. for gross proceeds of $75,020,000. In addition, Cline has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 4,092,000 common shares which, if exercised, would increase the gross offering size to $86,273,000. The offering is scheduled to close on or about June 7, 2011, and is subject to customary conditions and receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

Net proceeds of the offering will be used to complete the development of the New Elk coal mine which includes reinstalling the steel rail-spur and funding working capital, and for general corporate purposes.

This press release is not an offer of securities for sale in the United States. The common shares being offered have not been and will not be registered under the United States Securities Act of 1933, as amended and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

About Cline: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.

CLINE MINING CORPORATION

Ken Bates, President and Chief Executive Officer

Forward-Looking Information

This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including without limitation, those regarding the closing of the offering, the use of proceeds from the offering, the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of financings. The timing of drilling and work recommended by the NI 43-101 Technical Reports are based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2010 financial year end, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable laws. Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.

Head office: Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3

Contact Information