Prize Mining Corporation

Prize Mining Corporation

May 03, 2007 17:17 ET

Prize Mining Corporation: Completes Initial Tranche Private Placement of Units

CALGARY, ALBERTA--(CCNMatthews - May 3, 2007) - Prize Mining Corporation (TSX VENTURE:PRZ) is pleased to announce that it has closed the first tranche of its private placement of units ("Units"). An aggregate of 6,235,000 Units were issued at a price of $0.25 per Unit for gross proceeds of $1,558,750. Each Unit consists of one common share and one common share purchase warrant ("Warrant"). Each Warrant is exercisable at $0.35 per common share for a period of two years from closing. The securities issued pursuant to this tranche of the private placement are subject to a statutory resale restriction period of four months, which expires on September 4, 2007. The second tranche of the private placement is expected to be completed shortly.

Finders acting in connection with the initial tranche of the private placement received aggregate fees of $114,887.50 and 511,550 non-transferable options to purchase common shares of Prize at a price of $0.25 per share, which may be exercised on or before May 3, 2009.

Following the completion of the initial tranche of the private placement, Prize has 45,277,880 common shares issued and outstanding.

Proceeds of the private placement will be used to fund the purchase of a Knelson Processing Plant and for general working capital. The completion of the private placement is subject to regulatory approval.

About Prize Mining

Prize Mining Corporation (TSX VENTURE:PRZ) is a company dedicated to the exploration, discovery and development of precious metal deposits. The company is exploring for Gold in the Atlin area of British Columbia, Canada and its Nickel-Copper-Palladium and Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic Canada.


Harry McGucken, President and CEO

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

Contact Information