Niblack Mining Corp.
TSX VENTURE : NIB

Niblack Mining Corp.

November 04, 2005 09:30 ET

Niblack Closes $1.68 Million Dollar Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 4, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Niblack Mining Corp. (the "Company") (TSX VENTURE:NIB) announces that both the brokered and the first tranche of the non-brokered private placements, previously announced on September 9, 2005, have closed. The Company has issued a total of 4,818,700 units (the "Units") at a price of $0.35 per Unit to raise gross proceeds of $1,686,545. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share at a price of $0.50 per share until November 1, 2007.

Pacific International Securities Inc. (the "Agent") acted as Agent with respect to the sale of 3,489,700 Units. The Company paid the Agent a cash commission of $67,681, issued the Agent 85,802 Units and issued 348,970 agent's options (the "Agent's Options") pursuant to the Agency Agreement. Each Agent's Option is exercisable into one common share and one-half of one share purchase warrant until November 1, 2007 at an exercise price of $0.40 per Agent's Option. Each whole share purchase warrant entitles the Agent to purchase one common share at a price of $0.55 per share until November 1, 2007.

Finder's fees consisting of $15,680 cash, 16,720 Units and 76,900 Agent's Options were issued with respect to the sale of 769,000 of the Units issued in the first tranche of the non-brokered portion of the financing. It is anticipated that a second tranche of the non-brokered placement will be closed within 30 days.

Proceeds from the offering will be used to finance the Company's phase one exploration program on the Niblack project in Alaska and for working capital. The net proceeds raised are sufficient to meet the working capital listing requirements of the TSX Venture Exchange.

The securities are subject to a hold period expiring March 2, 2006.

On Behalf of the Board,

NIBLACK MINING CORP.

Paddy Nicol, President

This news release, required by applicable Canadian laws, is not for distribution to U.S. news wire services or for dissemination in the United States, and does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. The foregoing arrangements are subject to regulatory acceptance.

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

Contact Information

  • Niblack Mining Corp.
    Paddy Nicol
    President
    (604) 484-5045
    (604) 684-0279 (FAX)