Iron Lake Minerals Inc.
NEX BOARD : ILM.H

August 04, 2005 15:06 ET

Iron Lake Minerals Inc. announces Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2005) - IRON LAKE MINERALS INC. (ILM.H:NEX) is pleased to announce a private placement of 7,000,000 units of the company at a price of $0.05 per unit for gross proceeds of $350,000. Each unit is comprised of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire a common share at an exercise price of $0.10 per share for a period of one year from the date of issuance. In the event that the company graduates to Tier 2 of the TSX Venture Exchange within the year, the expiry date of the warrants will be extended to two years from the date of issuance.

In addition, the company is completing a second private placement of 7,000,000 million subscription receipts at a price of $0.05 per subscription receipt for gross proceeds of $350,000. Each subscription receipt will convert, at no additional cost, into one unit of the company. The units will have identical terms as the units sold in the first private placement. The proceeds of the sale of subscription receipts will be held in escrow pending graduation of the company from the NEX Exchange to the TSX Venture Exchange. A finder's fee of 800,000 common shares is payable in connection with the transaction.

The proceeds of both private placements will be used for further exploration on the Company's 21-claim-unit Duffell 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 on the property by Iron Lake Minerals Inc. between 1998 and 2002 included geophysical and geochemical surveys, prospecting, stripping, trenching, sampling and diamond drilling. These work programs encountered interesting gold values indicating that the property is prospective for gold mineralization.

Completion of the private placements is subject to the approval of the NEX Exchange.

THE NEX EXCHANGE DOES NOT ACCEPT RESPONSIBILTY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

Contact Information

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