Consolidated Thompson-Lundmark Gold Mines Limited
TSX VENTURE : CLM

Consolidated Thompson-Lundmark Gold Mines Limited

June 09, 2006 10:36 ET

Consolidated Thompson Announces Closing of Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - June 9, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMENATION IN THE UNITED STATES

Consolidated Thompson-Lundmark Gold Mines Limited (TSX VENTURE:CLM) ("CLM" or "the Company") is pleased to announce that it has closed the previously announced private placement consisting of 15,587,000 special warrants at a price of $2.75 per special warrant for aggregate gross proceeds to the Company of $42,864,250. This amount includes 1,037,000 special warrants issued pursuant to the partial exercise of the underwriters' option. Each special warrant is exercisable to acquire one common share of the Company for no additional consideration. The special warrants shall be automatically exercised at 5:00 p.m. (Toronto time) on the earlier of the following dates: (i) the fifth business day after the date (the "Clearance Date") on which a receipt is issued by the last of the securities regulatory authorities in each of the jurisdictions in Canada in which purchasers of the special warrants are resident for a final prospectus qualifying the common shares to be issued upon the exercise of the special warrants; and (ii) October 10, 2006. In the event that the Clearance Date has not occurred on or prior to September 7, 2006, each special warrant will thereafter be exercisable to acquire 1.05 common shares (in lieu of one common share).

The net proceeds from the Offering will be used for the continued development of the Bloom Lake Iron Ore Deposit in Quebec and for general corporate purposes.

The underwriting syndicate for the offering was led by Orion Securities Inc. and included Canaccord Capital Corporation, GMP Securities L.P. and CIBC World Markets Inc. As partial consideration, the underwriters received an aggregate of 935,220 broker options exercisable for no additional consideration into the same number of compensation options. Each compensation option is exercisable to acquire one common share at the price of $2.75 until December 9, 2007.

The securities issued in connection with the offering and the underlying securities issuable upon exercise of the securities are subject to resale restrictions until October 10, 2006.

THE SPECIAL WARRANTS AND COMMON SHARES ISSUABLE UPON EXERCISE OF THE SPECIAL WARRANTS WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

Certain information regarding the Company set forth in this press release, including management's assessment of the Company's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide any benefits to the Company.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Consolidated Thompson-Lundmark Gold Mines Limited
    Richard Quesnel
    President
    (514) 249-6320
    or
    Consolidated Thompson-Lundmark Gold Mines Limited
    Julian Bharti
    Business Development Manager, Montreal
    (514) 396-6345 ext. 24
    www.consolidatedthompson.com