MDN Inc.
TSX : MDN

MDN Inc.

July 29, 2005 15:50 ET

Northern Mining Announces Closing of Financing

MONTREAL, QUEBEC--(CCNMatthews - July 29, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

MDN NORTHERN MINING (MINIERES DU NORD)(TSX:MDN) announces the closing of a private placement in an amount of $1,500,000. The Company has elected to restrict the size of the private placement, which was made to comply with applicable regulatory requirements, given management's belief that the current stock price does not correctly reflect the value of MDN Northern Mining.

MDN Northern Mining has issued an aggregate of 3,750,000 common shares, at $0.40 per share. Each common share is accompanied by one common share purchase warrant (the "Warrant"); each Warrant entitles its holder to acquire one additional common share of MDN Northern Mining at a price of $0.75 for a period of five years following the closing of the private placement, but subject to an "acceleration" provision. The offering was made through a syndicate of agents led by Dundee Securities Corporation and Quest Securities Corporation.

Net proceeds from this offering will be used primarily to finance exploration programs on the Company's mineral licences located in Tanzania and in Eritrea; the balance will be held as working capital.

MDN 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 four licenses in Eritrea, and other gold and base metal exploration interests in Quebec, Canada.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. 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

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