Queenston Mining Inc.

Queenston Mining Inc.

November 08, 2010 11:30 ET

Queenston Announces $20 Million Financing

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2010) - QUEENSTON MINING INC. (TSX:QMI)(FRANKFURT:QMI)(STUTTGART:QMI) ("the Company" or "Queenston") announced today that it has entered into an agreement with Primary Capital Inc., as lead agent and including Dundee Securities Corporation, Cormark Securities Inc., GMP Securities L.P., and Macquarie Capital Markets Canada Ltd (collectively, the "Agents") in connection with the offering of 3 million "flow-through shares" of Queenston at a price of $6.70 per share for gross proceeds of $20,100,000. The financing is on a private placement guaranteed basis and represents a 20% premium to the VWAP (volume-weighted average price) of the Company over the last 5 trading days. The Flow-Through shares will be offered by way of private placement to accredited investors in the Province of Ontario.

The proceeds from the financing will increase the Company's working capital to approximately $90 million and will be used to continue with its high level exploration - development gold projects located in Kirkland Lake, Ontario. The private placement is scheduled to close on or about November 24, 2010 and is subject to regulatory approval including approval by the Toronto Stock Exchange.

Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp. The Company has recently entered into a strategic alliance with Agnico-Eagle Mines Limited with a strategy is to advance its' key, 100% owned gold projects (Upper Beaver, Upper Canada, McBean, Anoki and Bidgood) at the Kirkland East project towards feasibility and ultimately production. 

Queenston's Cautionary Note Regarding NI 43-101 and Forward Looking Statements

Except for historical information this News Release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections. A more detailed discussion of the risks is available in the "Annual Information Form" filed by the Company on SEDAR at www.sedar.com.

Contact Information

  • Queenston Mining Inc.
    Charles E. Page, P. Geo.
    President and CEO
    (416) 364-0001 (ext. 224)
    Queenston Mining Inc.
    Hugh D. Harbinson
    (416) 364-0001 (ext. 225)
    Queenston Mining Inc.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927