Iron Lake Minerals Inc.

February 02, 2006 17:19 ET

Iron Lake Minerals Inc. Reports Significant Shareholdings

PENETANG, ONTARIO--(CCNMatthews - Feb. 2, 2006) - IRON LAKE MINERALS INC. (NEX:ILM.H) announces that its previously announced private placement of 7,000,000 units of the company at a price of $0.05 per unit for gross proceeds of $350,000, has received approval from the NEX. Each unit is comprised of one common share of the company, one common share purchase warrant and one subscription receipt. Each warrant entitles the holder to acquire a common share at an exercise price of $0.10 per share until September 15, 2006. Each subscription receipt will convert into a unit of the company upon the company graduating from the NEX to the TSX Venture Exchange and an additional payment of $0.05 per unit. The hold period on the securities issued pursuant to the private placement expired January 16, 2006. The $350,000 representing the exercise price of all the subscription receipts is currently held in escrow pending graduation to the TSX Venture Exchange.

Allen Curtis, Donald Whalen, Anna Mae Whalen, David Mosher, Alexander Balabanov and Alexis Whalen acquired 760,000, 460,000, 500,000, 760,000, 1,360,000 and 1,260,000 units, respectively, pursuant to the private placement. Each of Mr. Whalen and Mr. Mosher also hold options to acquire a further 150,000 common shares of the company at a price of $0.10 per share until September 18, 2010. In addition, Mr. Donald Whalen, Alexis Whalen, David Mosher and Alexander Balabanov have entered into option agreements with existing shareholders of the company entitling each of them to acquire 592,500 common shares at a price of $0.05 until September 15, 2006. If Mr. Curtis, Mr. Whalen, Ms. Whalen, Mr. Mosher, Mr. Balabanov and Alexis Whalen were to exercise all of their respective convertible securities they would have, on a partially diluted basis, ownership over 3,040,000, 2,582,500, 2,000,000, 3,782,500, 6,032,500 and 5,632,500 common shares, respectively, or approximately 16.1%, 14.2%, 11.3%, 19.8%, 29.1% and 27.6%, respectively, of the company's then outstanding capital. The securities were acquired for investment purposes and each of the individuals may increase their respective ownership position in the future.

The percentage of the issued and outstanding shares owned by each of the individuals has been calculated on a partially diluted basis, reflecting each individual exercising all of their respective convertible securities, and no other increases in the number of issued and outstanding shares of the company. The actual percentage of shares owned by each of these individuals may be lower in the event that the company issues additional shares, prior to the exercise of the convertible securities by any of these individuals.

Shares Outstanding: 16,630,000


Contact Information

  • Iron Lake Minerals Inc.
    Deborah J. Bazinet
    (705) 533-3430
    (705) 533-1521 (FAX)