Patricia Mining Corp.
TSX VENTURE : PAT

Patricia Mining Corp.

November 20, 2007 16:52 ET

Patricia Mining Corp. Announces Rights Offering and Conversion of $2,000,000 Debenture

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) -

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

Patricia Mining Corp. ("Patricia") (TSX VENTURE:PAT) announces that it will be undertaking a rights offering with the holders of its common shares who are resident in the Provinces of Ontario, British Columbia and Alberta. Each eligible holder of common shares of record at the close of business on December 7, 2007 will be entitled to receive one right for each ten common shares held. The rights will be listed for trading on the TSX-V and will remain listed and posted for trading until noon (Toronto time) on the rights expiry date. The rights will expire at 4:00PM (Toronto time) on December 28, 2007.

One right will entitle the holder to subscribe for one unit at a price of $0.52 per unit. Each unit will be comprised of one common share and one half of a share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one common share at an exercise price of $0.75. The warrants will expire one year after the date of closing.

URSA Major Minerals Incorporated has agreed to act as a guarantor and to subscribe and purchase all units that are not otherwise subscribed for under this offering, at the subscription price to a maximum of 1,538,462 units ($800,000).

At the closing of the rights offering, the holder of a $2,000,000 debenture which came due on June 1, 2007 has agreed to convert the debenture into 3,846,154 units. In lieu of interest, an additional 536,250 units will be issued. Each unit will have the same terms and conditions as those offered under the rights offering described above. Each unit will be priced at $0.52 and is comprised of one common share and one half of a share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one common share at an exercise price of $0.75. The warrants will expire one year after the date of closing. The conversion of the debt is subject to regulatory approval.

Chris Chadder, Patricia's President and CEO stated "We are pleased that the Island Gold mine is now in commercial production and anticipate positive cash flow will increase shareholder value. The rights offering will allow our current shareholders to participate in this opportunity."

Patricia's main asset is a 45% interest in the operating Island Gold Mine located near Wawa, Ontario. An independent NI43-101 technical report by GENIVAR on the Island Gold Project was released on May 18, 2007. As of this date, the technical report estimated total Measured and Indicated Resources to be 454,705 tonnes grading 10.26 g/t gold. The mine currently has an estimated 4.8 year mine life based on estimated Proven and Probable Reserves totalling 1,013,854 tonnes at a diluted grade of 8.55 g/t gold. GENIVAR's NI43-101 technical report has been filed on SEDAR.

Patricia currently has 35,747,448 shares outstanding.

National Instrument 43-101 - The reserve and resource calculation for the Island Gold property as of May 15, 2007 was performed by GENIVAR for Richmont Mines Inc. as operator of the project. Mr. Michel Garon, Eng., of GENIVAR, is the qualified person under the terms of NI43-101.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs at the Island Gold Project, future profitability and production.

The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Patricia Mining Corp.
    Christopher R Chadder C.A.
    President & CEO
    (416) 214-4900
    or
    Patricia Mining Corp.
    Richard H. Sutcliffe, Ph.D, P. Geo.
    Chairman
    (416) 214-4900
    (416) 864-0620 (FAX)
    or
    Patricia Mining Corp.
    Mr. Gus Garisto
    Investor Relations
    (416) 805-3106
    Email: info@patriciamining.com
    Website: www.patriciamining.com