Queensland Minerals Ltd.
TSX VENTURE : QML

Queensland Minerals Ltd.

March 29, 2007 09:34 ET

Queensland Minerals Ltd.: Announces Exercise of the Over-Allotment Option

MONTREAL, QUEBEC--(CCNMatthews - March 29, 2007) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Queensland Minerals Ltd. (TSX VENTURE:QML) is pleased to announce that is has closed the over-allotment option granted to the syndicate led by Westwind Partners Inc. and including Canaccord Capital Corporation, Dundee Securities Corporation and Primary Capital Inc. (collectively, the "Agents"), in connection with the Company's previously announced initial public offering, which closed on March 1, 2007 (the "Closing Date").

Pursuant to the over-allotment option, the Agents elected to purchase an additional 2,000,000 units at a price of $0.60 per additional unit and an additional 350,000 warrants at a price of $0.01 per additional warrant, raising the total gross proceeds of the initial public offering to $12,003,500.

Each unit purchased is comprised of one common share of the Company and one half of one common share purchase 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 common 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.

The additional net proceeds from the exercise of the over-allotment option will be used to further fund the Company's objective to locate and develop economic properties of merit and will focus primarily on gold at the Sybil Graben, Lynd River and Mungana projects.

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.

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

  • Queensland Minerals Ltd.
    James Crombie
    Chief Executive Officer
    450-677-3868
    450-677-2601 (FAX)