New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

July 28, 2006 17:15 ET

New Millennium Capital Corp. Announces Proposed Pricing and Revised Terms for Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - July 28, 2006) -

Not for distribution to US newswire services or dissemination in the United States

New Millennium Capital Corp. ("NML" or "the Corporation") (TSX VENTURE:NML) reports that it has reached an agreement with Raymond James Ltd. and Research Capital Corporation regarding the proposed pricing and structure of the brokered private placement announced on July 11, 2006. NML will offer from treasury (i) a minimum of $7.0 million of special warrants (the "Special Warrants") at $0.75 per Special Warrant and (ii) up to $3.0 million of flow-through special warrants (the "FT Special Warrants") at $0.85 per FT Special Warrant. Each Special Warrant will consist of one unit ("Unit") comprising one common share ("Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant will be exercisable into one common share (a "Warrant Share") for a period of twenty four months from Closing at an exercise price of $1.00 per Share. Each FT Special Warrant will consist of one flow-through common share ("Flow-Through Share").

NML will use commercially reasonable efforts to obtain a receipt for a final prospectus qualifying the issue of the Units and Flow-Through Shares. In the event NML fails to obtain receipts for a final prospectus by the 45th day from the closing date, each Special Warrant will entitle the holder to acquire 1.1 Shares and 0.55 Warrants.

The agents will receive a cash commission of 6% of the gross proceeds and broker warrants exercisable into common shares equal to 6% of the total Special Warrants and FT Special Warrants placed. The broker warrants are exercisable at $0.75 for a period of 18 months from the closing date.

The closing of the financing is expected to occur on or about August 15, 2006 and is subject to receipt of normal course regulatory approvals. The net proceeds of the issue of the Special Warrants will be used to partially fund the costs of the feasibility study on the LabMag Project, currently estimated at $37 million, while the gross proceeds of the issue of FT Special Warrants will used to fund exploration programs on Canadian properties, including the LabMag Project.

About New Millennium

New Millennium holds an 80% interest in the LabMag Iron Ore Project, the world's largest known undeveloped magnetite reserve that is currently at an advanced stage of exploration. The project is located in the province of Newfoundland and Labrador ("NL") about 220 km north of Labrador City and 30 km northwest of Schefferville, Quebec. The development envisions the construction and operation of a mine, crusher, concentrator, slurry pipeline, pellet plant, shiploading facilities and related infrastructure. Subject to positive feasibility studies and project financing, it is expected that the final pellet product would constitute a significant new source of global pellet supply and would be shipped by ocean vessels to markets in Canada, the United States, Western Europe and Asia. For further information, please visit www.nmlresources.com.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. New Millennium does not assume any obligation to update any forward looking information contained in this news release.


No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information