Iron Lake Minerals Inc.

September 21, 2005 11:41 ET

Iron Lake Completes Private Placement And Changes Board

PENETANG, ONTARIO--(CCNMatthews - Sept. 21, 2005) - IRON LAKE MINERALS INC., (NEX:ILM.H) is pleased to announce that the first of two $350,000 non-brokered private placements, previously announced on August 4, 2005, was closed on September 15, 2005. This private placement consists of seven million units of Iron Lake at a price of five cents ($0.05) per unit. Each unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire an additional common share at an exercise price of ten cents ($0.10) for a period of one year. A finder's fee of 400,000 common shares was paid to Rustle Woods Capital Inc. All of the common shares issued under this private placement are subject to a hold period of four months.

The second $350,000 private placement has been evidenced by way of subscription receipts, with the subscribers of the first private placement, and will be closed upon Iron Lake returning to the TSX Venture Exchange as a Tier 2 mining issuer. The terms of the second private placement are identical to the terms of the first private placement. A finder's fee of 400,000 common shares will be payable to Rustle Woods on closing.

The subscribers of the private placements and Rustle Woods have also entered into option agreements to acquire 3,050,000 common shares of Iron Lake at a price of five cents ($0.05) per common share from Iron Lake's President, a former Director, and two major shareholders. The option to acquire all or part of these common shares is in effect for one year.

In addition, Laurence Curtis, David Mosher and Donald Whalen have joined Iron Lake's Board of Directors. Mr. Curtis and Mr. Mosher are Directors of Intrepid Minerals Corporation and High River Gold Mines Ltd.; Mr. Whalen is a Director of High River. Mark McMurdie has been appointed Chief Financial Officer and Corporate Secretary. Deborah Bazinet will continue to act as President and Chief Executive Officer.

The Board wishes to thank former Directors of Iron Lake, Glenn Clark, James Davis and Brenda Lamoureux, for their contributions.

The Board also granted 750,000 stock options to its Directors and Officers under the terms of Iron Lake's Incentive Stock Option Plan. The stock options have a term of five years and each option is exercisable at a price of $0.10. One third of the stock options vests immediately, one third vests in twelve months and one third vests in twenty four months.

The proceeds of both private placements will be used for further exploration on Iron Lake's 21 claim unit Duffel Lake area property in the Pickle Lake region of Northwestern Ontario, acquisition of other mineral properties and for general working capital.

Preliminary exploration programs completed by Iron Lake on the Duffel Lake area property, between 1998 and 2002, encountered gold values indicating that the Duffel Lake property is prospective for gold mineralization.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

Shares Outstanding: 16,300,000.

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

Contact Information

  • Iron Lake Minerals Inc.
    Deborah Bazinet
    (705) 533-3430