Millstream Mines Ltd.

Millstream Mines Ltd.

December 12, 2011 13:37 ET

Millstream Sets Terms of Financing

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2011) - Millstream Mines Ltd. (TSX VENTURE:MLM)(FRANKFURT:NJD) wishes to announce that it is offering up to 3,000,000 flow-through common voting shares for maximum gross proceeds of $150,000 by way of a non-brokered private placement issuance. As well, the company expects to complete an offering of 1,250,000 common voting shares for gross proceeds of $50,000. These above share issuances are both subject to a four (4) month hold period from their respective dates of closing. The company may pay a finder's fee of up to 10% cash or its equivalent in stock.

The intended use of these proceeds is for exploration and development of its Potter Mine Property and for general working capital purposes. Specifically, the company will continue its investigative efforts on the Potter to determine and obtain an improved and more complete understanding of its potential by utilizing a geophysical Helicopter-Borne ZTEM TIPPER AFMAG survey over the entire property.

The company's management and consultants are of the opinion that on the Potter Property there is a likelihood of identifying additional ore zone targets outside of the present known resources. Furthermore, there is good probability of locating an offset/duplication of the existing defined ore zones and an increase in their present dimensions by way of uncovering their upward, downward and lateral continuity. In addition, there is interest in the large ovoid surface depression to the south and the northern limb of the syncline (the mine area being on the southern limb), as both present very favourable targets for future drilling prospects.

The above private placement is subject to TSX Venture Exchange approval.

Potter Property NI 43-101 Resource Outline

Indicated Resource
Tonnes Copper
3,028,767 1.45 1.19 389.7 11.1 127.5
Inferred Resource
2,071,101 1.08 1.05 301.4 8.7 81.7

The Potter Mine Property is a past producing mine and host to copper-zinc-cobalt "stacked" mineralized zones. It is located in the Abitibi Greenstone Belt, and more specifically in the Kidd-Munro Assemblage which are highly prolific in gold, silver, and base metal mineralization. The property may be is accessed by a mining road off of highway 101, near the town of Matheson in north eastern Ontario and a 390 meter deep shaft resides on the property.

About Millstream Mines Ltd.:

Millstream Mines Ltd. is a Canadian-based mineral exploration company whose principle objective is to enhance and develop known mineral properties to production potential. The Company has projects in the Province of Ontario, Canada and in the State of Montana, USA. The Potter Mine Property found in Ontario is outlined above. The Tamarack Gold Property, a former high grade gold producer in the Tobacco Root Mountains of south western Montana, is in an advanced stage of underground exploration and development operating under the Small Mines Exclusion Act of the State of Montana. Exploration properties in the companies portfolio also include the Uncle Sam gold project property in Montana and the Airport property (Sudbury basin precious metals project) in Ontario.

Further information about these properties and the company is available on our website:

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Millstream seeks safe harbour with regard to forward looking statements.

Contact Information

  • Millstream Mines Ltd.
    Mr. Ernest Harrison, EM, Chairman and CEO

    Millstream Mines Ltd.
    Mr. Marty Martinello, B.A., Executive V.P.

    Millstream Mines Ltd.
    Mr. Robert Chase, CFA
    President and CFO
    416-368-6827 (FAX)