Desert Sun Mining Corp.

Desert Sun Mining Corp.

March 04, 2005 09:20 ET

Desert Sun Mining Corp. Announces $20 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM
AMEX SYMBOL: DEZ

MARCH 4, 2005 - 09:20 ET

Desert Sun Mining Corp. Announces $20 Million Financing

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - NOT FOR DISTRIBUTION
IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ) announced today that it has
entered into an agreement with a syndicate of underwriters led by Sprott
Securities Inc. and including CIBC World Markets Inc, Salman Partners
Inc., Canaccord Capital Corporation, First Associates Investments Inc.,
Haywood Securities Inc. and Pacific International Securities Inc.
pursuant to which the underwriters have agreed to purchase, on a bought
deal basis, 8,583,691 units at a price of $2.33 per unit for aggregate
gross proceeds of $20,000,000. The underwriters have the option to
purchase an additional 2,145,923 units at the issue price for additional
gross proceeds to Desert Sun of $5,000,000 at any time prior to the
closing of the offering. Each unit will consist of one common share and
one-quarter of one common share purchase warrant of Desert Sun. Each
whole warrant will be exercisable at a price of $2.50 until November 20,
2008. Proceeds from the offering will be used to fund expansion of
exploration program in Pindabacu, Morro do Vento, Canavieras and
Jacobina, as well as finance pre-feasibility and other development work
at Morro do Vento and Canavieras.

Desert Sun anticipates filing a preliminary short form prospectus with
the securities regulatory authorities in each of the provinces of Canada
on or about March 8, 2005. The offering is subject to normal regulatory
approvals. It is anticipated that closing of the offering will occur on
or about March 22, 2005.

Desert Sun Mining is a Canadian gold exploration and development company
listed on the Toronto Stock Exchange and the American Stock Exchange
(www.desertsunmining.com).

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these "forward
looking statements".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    DESERT SUN MINING CORP.
    Naomi Nemeth
    416-861-5901 or 1-866-477-0077
    www.desertsunmining.com