Cusac Gold Mines Ltd.
TSX : CQC
OTC Bulletin Board : CUSIF
FRANKFURT : DCB

Cusac Gold Mines Ltd.

August 23, 2007 19:56 ET

Cusac Closes $863,000 Financing, Second Tranche of $1 Million Northern Securities Underwriting Pending

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - David H. Brett, President of Cusac Gold Mines Ltd. (TSX:CQC)(OTCBB:CUSIF)(FRANKFURT:DCB) ("Cusac" or the "Company"), reports that Cusac has closed $710,430 in equity financing with Northern Securities Inc. (the "Northern Financing"), the first tranche of a $1.02 million underwriting announced July 23, 2007, and an additional $153,000 financing under a separate non-brokered offering. The proceeds will be used to complete underground development work required to recommence gold production at the Company's 100% owned and operated Table Mountain Gold Mine, and for working capital purposes. Cusac is the owner of the Cassiar Gold Property which includes a 1.04 million ounce inferred gold resource at the Taurus Deposit (partly under option from another mining company), the 100% owned Taurus II bulk tonnage gold exploration project, and the past producing Table Mountain Gold Mine.

Under the Northern Financing, the Company issued 4,179,000 Units at $0.17 per unit for gross proceeds of $710,430. Each unit consists of one common share and one half of one warrant, whereby each whole warrant will entitle the holder to purchase an additional common share at $0.20 per share for a period of 18 months. All securities issued or issuable are subject to a 4 month hold period expiring December 24, 2007.

Compensation paid under the first tranche of the Northern Financing included $71,043 in cash and issuance of 417,900 compensation options. Each such option will entitle the holder to purchase one unit at $0.20 consisting of one common share and one half of one warrant with each whole warrant entitling the holder to purchase an additional common share at $0.20 for a period expiring February 23, 2009.

Under the non-brokered financing, the Company issued 900,000 units at $0.17 per unit for gross proceeds of $153,000. Each unit consists of one common share and one half of one warrant, whereby each whole warrant will entitle the holder to purchase an additional common share at $0.20 for a period expiring January 17, 2009. All securities issued or issuable are subject to a 4 month hold period expiring November 18, 2007.

Compensation paid under the non-brokered financing was $10,710.00 in cash and 72,000 broker warrants. The Broker Warrants entitle the holder to purchase 72,000 common shares at $0.20 for a period of 18 months.

Cusac Gold Mines Ltd., in existence since 1966, is a gold production and exploration company focused on the Cassiar Gold Property in northern British Columbia. Please visit our website www.cusac.com for more information.

CUSAC GOLD MINES LTD.

David H. Brett, President & CEO

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cusac Gold Mines Ltd.
    Investor Relations
    Toll Free: 1-800-670-6570 (Canada) or 1-800-665-5101 (USA)
    Email: info@cusac.com
    Website: www.cusac.com