GobiMin Inc.
TSX VENTURE : GMN

GobiMin Inc.

April 20, 2007 11:15 ET

GobiMin Announces Bought Deal Financing

TORONTO, ONTARIO--(CCNMatthews - April 20, 2007) -

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

GobiMin Inc. (TSX VENTURE:GMN) (the "Company") confirms an agreement with a syndicate of underwriters led by Desjardins Securities Inc. to raise $11,250,000 on a bought deal basis consisting of a private placement of 3,000,000 Common Shares at a price of $3.75 per Common Share.

The Underwriters have also been granted an option to place, prior to closing, up to an additional 450,000 Common Shares at a price of $3.75 per Common Share for further gross proceeds of $1,687,500 and for aggregate gross proceeds of $12,937,500.

Closing of the transaction is expected to occur on or about May 16, 2007 and is subject to normal regulatory approvals. The net proceeds of the Offering will be used for exploration, further development of the nickel/copper Huangshan Deposit (Yellow Mountain) in China and for general working capital purposes. It remains subject to the execution of an underwriting agreement, TSX Venture Exchange approval and other usual conditions.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the 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.

About GobiMin Inc.

GobiMin Inc. is a junior mining company with nickel sulphide operations and development properties in northwestern China. The Company controls three concessions, within a 10-kilometre radius, totalling 455 hectares. In operation since 1999, GobiMin currently mines approximately 330,000 tonnes of ore annually from two underground mines (Huangshan Dong and Xiangshan). GobiMin's shares are traded on the TSX-Venture under the symbol GMN.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • GobiMin Inc.
    James Xiang
    Chief Financial Officer
    (416) 915-0133