Franconia Minerals Corporation
TSX VENTURE : FRA

Franconia Minerals Corporation

April 11, 2007 15:08 ET

Franconia Minerals Announces Brokered Private Placement Financing

SPOKANE, WASHINGTON--(CCNMatthews - April 11, 2007) - Franconia Minerals Corporation (TSX VENTURE:FRA) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

FRANCONIA MINERALS CORPORATION (TSX VENTURE:FRA) (the "Corporation") is pleased to announce a brokered private placement financing of a minimum of Cdn$11,000,000 to a maximum of Cdn$13,000,000 through the issuance of units at Cdn$1.60 per unit.

Each unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at an exercise price of Cdn$1.92 at any time prior to the earlier of: a) the date which is the 15th trading day after receiving notice from the Corporation that the weighted average price of the Common Shares on the TSX Venture Exchange or the Toronto Stock Exchange has been equal to or greater than $2.40 for a period of 15 consecutive trading days commencing on the second anniversary after the date of issuance of the warrants; and b) three years from the date of issue.

The completion of the private placement is subject to the receipt of conditional listing approval from the TSX Venture Exchange. The net proceeds from the offering will be used for drilling at the Corporation's exploration program, continued work on the pre-feasibility study on the Maturi-Birch Lake combined operation and for general corporate purposes. The units will be subject to a 4 month and one day hold period. Northland Securities Inc will act as agent in respect of the offering and will receive a commission in cash equal to 7% of the gross proceeds and brokers warrants equal to 10% of the units issued. The broker warrants will have an exercise price of Cdn$1.92 and expire 24 months from the date of issue.

Franconia Minerals Corporation trades on the TSX-V under the symbol FRA. (For additional information see www.franconiaminerals.com.) The directors of Franconia Minerals Corporation accept responsibility for this announcement. Franconia presently has 43,598,479 shares issued and outstanding.

Brian Gavin, President

FORWARD-LOOKING STATEMENT: Although Franconia Minerals Corporation believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.

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

Contact Information