GobiMin Inc.
TSX VENTURE : GMN

GobiMin Inc.

May 31, 2006 16:20 ET

GobiMin Inc. Announces Proposed Private Placement

TORONTO, CANADA--(CCNMatthews - May 31, 2006) -

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

GobiMin Inc. (the "Company" or "GobiMin") (TSX VENTURE:GMN) is pleased to announce that it has entered into an agreement with a syndicate of agents led by Desjardins Securities Inc. and including MGI Securities Inc. (the "Agents"), pursuant to which the Agents have agreed to place, by way of private placement on a best efforts basis, common shares for total gross proceeds of approximately C$15 million. The offering is being made pursuant to exemptions from prospectus requirements and is scheduled to close on or about June 27, 2006. It remains subject to the execution of an agency agreement, TSX Venture Exchange approval and other usual conditions. The offering will be priced in the context of the market.

The net proceeds of the offering will be used to fund further development of the Company's mineral properties, acquisition of additional properties, ongoing exploration and for general working capital purposes.

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.

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 kilometer radius, totaling 455 hectares. In operation since late 1999, GobiMin currently mines nickel and copper ore from two underground mines (Huangshan Dong and Xiangshan). The Company has started a 15,000 meter drilling program at its promising Huangshan nickel-copper deposit to bring the historical resource in compliance with the Canadian Securities Administrators NI 43-101 guidelines.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • GobiMin Inc.
    James Xiang
    Chief Financial Officer
    (416) 915-0133
    or
    GobiMin Inc.
    Laurie Gaborit
    Investor Relations
    (416) 350-3779 extension 222
    info@gobimin.com