MDN Inc.
TSX : MDN

MDN Inc.

January 19, 2006 09:30 ET

MDN Northern Mining Announces $5.1 Million Private Placement to Fund Exploration and Development

MONTREAL, QUEBEC--(CCNMatthews - Jan. 19, 2006) -

Not for distribution to U.S. News Wire Services or for dissemination in the U.S.

Northern Mining Explorations Ltd. ("MDN Northern Mining" or the "Company") (TSX:MDN) is pleased to announce that it has retained Haywood Securities Inc. to act as its lead agent (the "Agent") in connection with a private placement offering, on a best efforts basis, of up to 6,750,000 units (the "Units") for gross proceeds of up to $5,062,500. The offering is scheduled to close on or about February 14, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of The Toronto Stock Exchange.

Each Unit will be priced at $0.75 per Unit and will consist of one common share in the capital of the Company and one half of one common share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company at the price of C$1.00 until January 14, 2009. The Agent have been granted an option, exercisable up to 48 hours before closing, to increase the offering by up to an additional 2,716,667 million Units, which, if exercised in full, would provide additional gross proceeds of $2,037,500.25.

Proceeds of the private placement will be used to fund the exploration and development of the Company's projects in Tanzania and in Eritrea, and for working capital and general corporate purposes. MDN Northern Mining is planning a systematic drilling program to test various targets in the region surrounding the Tulawaka Mine and to follow-up the gold discoveries made in 2005. Proceeds will also fund the drilling of advanced gold and base metal targets in Eritrea. Carlos Bertoni, the Company's CEO stated: "We look forward to delivering new discoveries in both Tanzania and Eritrea by carrying out comprehensive drilling programs. The targets we have been developing are of high quality and time has arrived to demonstrate their full potential".

MDN Northern Mining is a Montreal-based Canadian exploration company that holds a 30% interest in the Tulawaka Gold Mine and a majority interest in 25 adjacent mineral licences in Tanzania, a majority interest in three licenses in Eritrea, and other gold and base metal exploration interests in Quebec, Canada.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) absent registration or unless an exemption from the registration requirements is available. 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.

Contact Information

  • Northern Mining Explorations Ltd.
    Carlos H. Bertoni, M.Sc., P.Geo
    CEO
    (514) 866-6500
    or
    Northern Mining Explorations Ltd.
    C. Timothy (Tim) Williams, Ph.D., C.Eng.
    COO
    (514) 866-6500
    or
    Northern Mining Explorations Ltd.
    Paul-A. Girard, Chairman and V.-P
    Investor relations
    (514) 866-6500
    www.xnord.com
    info@xnord.com