Inspiration Mining Corporation
TSX : ISM
FRANKFURT : OI8

Inspiration Mining Corporation

October 19, 2006 12:56 ET

Inspiration Closes Institutional Private Placement

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2006) - Inspiration Mining Corporation (the "Corporation") (TSX VENTURE:ISM)(FWB:OI8) announces that further to its press releases dated September 29 and October 11, 2006, the Corporation, as at October 12, 2006, has issued an aggregate of 3,250,250 Units at a price of $0.80 per Unit for gross proceeds of $2,600,200. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (the "Warrant"). Each Warrant entitles the holder thereof to purchase one (1) common share at an exercise price of $1.10 per common share at any time until close of business October 12, 2007. The proceeds will be used for further exploration and development of the Corporation's properties and for general working capital.

The Corporation would also like to emphasize the fact that the majority of this Placement was subscribed for by Institutional Investors from Europe.

In connection with the closing of the private placement, the Corporation paid a finder's fee to three (3) arm's length parties. The finder's fee consisted of a cash payment of $120,000, the issuance of an aggregate of 63,150 common shares at a deemed value of $0.80 per share and the issuance of an aggregate of 126,300 common share purchase warrants (the "Finder's Warrants"). Each Finder's Warrant entitles the holder thereof to purchase one (1) common share at an exercise price of $1.10 per common share at any time until close of business October 12, 2007.

Inspiration Mining

The Corporation is a public junior mining company that trades on the TSX Venture Exchange under the symbol "ISM". The company is exploring for polymetallic, massive sulphide deposits on its Jasper property on Vancouver Island, British Columbia, and nickel deposits on its Langmuir property near Timmins, Ontario, as well as gold-copper on the Barton Syndicate Dry Fork property in Utah.

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

Contact Information

  • Inspiration Mining Corporation
    Randy Miller
    President of the Company
    (905) 853-7400
    Website: www.inspirationmining.com
    or
    For Investor Relations call:
    Gale Capital Corporation
    (604) 221-7604
    (604) 221-7606 (FAX)
    Email: galecapital@shaw.ca