Pitchstone Exploration Ltd.

Pitchstone Exploration Ltd.

November 24, 2010 07:00 ET

Pitchstone Closes Flow-Through Financing

- Financing Increased to $1,630,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2010) - Pitchstone Exploration Ltd. (TSX VENTURE:PXP) ("Pitchstone" or the "Company") has closed a non-brokered private placement of 3,260,000 "flow-through" common shares at $0.50 per share to raise gross proceeds of $1,630,000. The amount raised was increased from the previously announced $1,500,000. A cash finder's fee of $70,000 plus finder's warrants equal to 5% of the common shares subscribed for has been paid in connection with part of the private placement. The finder's warrants will be exercisable at $0.50 for a period of one year. All securities issued in the private placement will be subject to a hold period expiring on March 23, 2011.

Pitchstone's cash position is now approximately $4.1 million and the Company has 39.8 million common shares outstanding after the closing. The flow-through funds raised will be used for exploration on Pitchstone's Canadian property interests, which will constitute Canadian Exploration Expenses (as defined in the Income Tax Act) and will be renounced for the 2010 taxation year.

Athabasca Basin Plans

During 2011, drilling programs are planned for the Gumboot, Johnston Lake and Wolverine properties in the Athabasca Basin to follow up on previously intersected uranium mineralization and alteration on all three projects. Ground geophysical surveys are planned for the Candle property and also for the northeast portion of the Darby property, 9 kilometers west of the Cigar Lake mine. 

Namibia Plans

In Namibia in 2011, Pitchstone will continue to focus on the Dome property, located in proximity to the Rössing and Langer Heinrich uranium mines in the area known as the Erongo region. A program of reverse circulation drilling is planned at Dome early in 2011 to follow up on encouraging uranium drilling results obtained earlier in the year (see October 13, 2010 News Release). 

About Pitchstone

Pitchstone is exploring for uranium in three proven districts in Canada and Namibia. The property portfolio features 12 projects in the eastern Athabasca Basin, Saskatchewan, four of which are 100% owned. In addition, there is a joint venture on two projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut. Pitchstone benefits from the collaboration of a unique group of geologists with extensive uranium exploration and production experience. 

On behalf of the Board,

Steven J. Blower, President and CEO

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond Pitchstone's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.

Neither 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

  • Pitchstone Exploration Ltd.
    Claire Stewart
    604 630 5563
    Pitchstone Exploration Ltd.
    Mark T. Brown
    604 687 3520