Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

January 05, 2011 16:55 ET

Pacific Iron Ore Corporation Announces Closing of Second Tranche of Non-Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Jan. 5, 2011) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES.

Pacific Iron Ore Corporation ("PIOC" or the "Corporation") (TSX VENTURE:POC) is pleased to announce that it has closed the second and final tranche of its previously announced non-brokered private placement (the "Offering"). Pursuant to the Offering, the Corporation issued an aggregate of 1,800,000 common shares ("Common Shares") at price of $0.34 per Common Share and 4,310,537 shares of the Corporation issued on a flow-through basis (the "Flow-Through Shares") at a price of $0.38 per Flow-Through Share for aggregate gross proceeds of approximately $2,250,000. There is a four month hold period on the Common Shares and 4,047,367 of the Flow-Through Shares which expires on March 31, 2011, with the remaining 263,160 Flow Through Shares having a four month hold period which expires on April 30, 2011. The Corporation paid an 8% cash finder's fee to certain arm's length parties who assisted with the placement of shares.

The proceeds of the Offering will be used to fund ongoing exploration on the Corporation's mineral properties, including drilling programs on the Pearson iron ore property in British Columbia and on the St. Anthony's gold property on Ontario, as well as for working capital and general corporate purposes.

Forward Looking Statements:

This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation believes the expectations expressed in such forward looking statements are based on reasonable assumptions, investors are cautioned that such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's public filings which are available at www.sedar.com.

The Common Shares have not and will not be registered under the United States Securities Act of 1933 as amended (the "US Securities Act") or any state securities laws and may not be offered or sold in the United States or to any US Person except in certain transactions exempt from the registration requirements of the US Securities Act and applicable state securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    CEO
    (403) 228-0607
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Leonard Cornez
    Chief Financial Officer
    (403) 218-0294 or Toll Free: 1-866-682-5812
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Jeff Austin, P. Eng.
    President
    (250) 763 4892
    (403) 265-2887 (FAX)