New Millennium Capital Corp.

New Millennium Capital Corp.

September 08, 2005 15:45 ET

New Millennium Capital Corp. Announces Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 8, 2005) - New Millennium Capital Corp. (TSX VENTURE:NML) ("NML") is pleased to announce that it has entered into an engagement agreement with Raymond James Ltd. and Investpro Securities Inc. (collectively, the "Agents") in connection with a proposed private placement financing (the "Financing") of a minimum of $3.5 million to a maximum of $7 million. The Financing will be comprised of a combination of common share units (the "Common Share Units") issued at a price of $0.50 and flow-through shares (the "Flow-Through Shares") issued at a price of $0.50. The maximum subscription amount of Flow-Through Shares that will be issued is $4 million. Each Common Share Unit will be comprised of one common share (a "Common Share") and one-half common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.75 for a period of 24 months following closing of the Financing. Each Flow-Through Share will be comprised of one Common Share issued as a "flow-through share" within the meaning of the Income Tax Act (Canada).

As consideration for their services in connection with the Financing, the Agents are entitled to receive an agency fee of $15,000, a marketing commission of 7% of the gross proceeds of the Financing and an agents option permitting the Agents to purchase Common Shares representing a number equal to 10% of the Common Share Units and Flow-Through Shares issued pursuant to the Financing, exercisable at a price of $0.50 for a period of 18 months following closing of the Financing.

The closing of the Financing is expected to occur on or about October 15, 2005 and is subject to receipt of normal course regulatory approvals. The net proceeds of the Financing will be used to fund the Corporation's 2005 drilling and bulk sampling program on the LabMag Iron Ore Project and to fund its pre-feasibility engineering, base-line environmental and marketing studies and for general working capital purposes.

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

Contact Information

  • New Millennium Capital Corp.
    Robert Martin
    President and Chief Executive Officer
    (514) 935-3204
    New Millennium Capital Corp.
    Dean Journeaux
    Project Director
    (514) 935-3204