SOURCE: Delta Mining and Exploration Corp.

July 08, 2008 09:00 ET

Delta's Chairman to Provide Capital to Complete Exploration Analysis

MISSOULA, MT--(Marketwire - July 8, 2008) - Delta Mining and Exploration Corp. (PINKSHEETS: DMXC) ("Delta") announces that in view of the current difficulties in raising equity in the financial markets, Chairman of the Board of Directors, Charles Wells, has agreed to loan $75,000 to Delta that will allow the Company to move forward with its business and exploration plans for its diamond projects in Montana, and more specifically to complete the scheduled laboratory analysis of the 30 ton bulk sample from the Homestead property. In a Unanimous Consent of Directors, in which Charles Wells recused himself from the vote, the remaining Directors agreed to the terms of the loan. Details of the transaction are provided below.

The $75,000.00 loan is to be repaid in one "balloon" payment on June 30, 2010. The interest rate is 10% per annum, compounding annually. Delta Mining may prepay, without penalty, any portion of the loan at any time prior to the due date. For consideration of the loan, the Board agreed to issue to Charles Wells, 5,000,000 warrants at $0.01 and 5,000,000 warrants at $0.02, exercisable until June 24, 2010.

Should Delta default on the loan repayment, Delta has agreed to issue sufficient shares to Charles Wells to bring his total holdings to 30% of the issued and outstanding shares of the Company as of the date of the default of the loan repayment.

CEO of Delta, Brett Rodli, stated, "The terms of the loan are favorable to Delta and its shareholders and allows the Company to proceed with the important analysis of the Homestead bulk sample." Delta will release the commencement date when a date is confirmed with the laboratory.

About Delta Mining and Exploration Corp., Delta is a mineral exploration company with an extensive portfolio of diamond properties in central Montana, USA. Delta controls some 7,554 acres throughout Montana located within the Wyoming Craton where much of North America's diamonds have been found.

NOTE: Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of the Company to complete the planned bridge financing, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.

Contact Information

  • Contact:
    Brett Rodli
    Chief Executive Officer