Queensland Minerals Ltd.

Queensland Minerals Ltd.

March 01, 2007 09:22 ET

Queensland Minerals Ltd. Announces Closing of its Initial Public Offering and Listing on the TSX Venture Exchange ("QML")


Queensland Minerals Ltd. (the "Company") (TSX VENTURE:QML) is pleased to announce that it has successfully completed its initial public offering ("IPO") of 18,000,000 units (the "Units") at a price of $0.60 per Unit for total gross proceeds of $10,800,000. Each Unit is comprised of one common share of the Company (a "Share") and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase an additional Share at a price of $0.80 per Share until August 31, 2008. After the date that is six months from the Closing Date, in the event that the closing price of the Shares is $1.20 or more for a period of at least 20 consecutive trading days, the Company will have the right to accelerate the termination of the exercise period of the Warrants to 30 days from the notice of such acceleration.

A prospectus dated February 21, 2007 was filed with and receipted by the British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador Securities Commissions on February 22, 2007 (the "Prospectus").

The Shares will begin trading on the TSX Venture Exchange today under the symbol "QML". As of the completion of the IPO, the Company has a total of 38,209,643 Shares issued and outstanding.

Westwind Partners Inc. acted as lead agent with a syndicate comprised of Canaccord Capital Corporation, Dundee Securities Corporation and Primary Capital Inc. as Agents for the IPO pursuant to the terms of an agency agreement dated February 21, 2007. The Company has granted the Agents an option, exercisable at any time for a period of 30 days from the date hereof, to purchase up to an additional 2,700,000 Units at a price of $0.60 per Unit, or 2,700,000 Shares and 1,350,000 Warrants. In the event the Agents exercise the option in full, the total gross proceeds to the Company will be $12,420,000. The Company also granted to directors and officers of the Company a total of 1,740,000 options to purchase Shares at a $0.60 per Shares up to March 1, 2012.

The Company is engaged in the business of mineral exploration in the State of Queensland, Australia through its wholly-owned subsidiaries Queensland Minerals (Australia) Pty Ltd. and Asmam Pty Ltd. Its objective is to locate and develop economic properties of merit and will focus primarily on gold at the Sybil Graben, Lynd River and Mungana projects.

The Company has a management team with proven track record of success in the mining sector including David Fennell, the Company's Chairman, James Crombie, the executive Vice Chairman and Chief Executive Officer, Adrian Fleming, the President and Al Marton, Technical Director.

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 an 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.

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including statements regarding potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed in the Prospectus and, in particular in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the Prospectus dated February 21, 2007 and the NI 43-101 Technical Report dated January 16, 2007 and other documents available on SEDAR (www.sedar.com).

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

Contact Information

    James Crombie
    Chief Executive Officer
    450-677-2601 (FAX)