Radisson Mining Resources Inc.

Radisson Mining Resources Inc.

October 06, 2011 08:00 ET

Radisson Mining Resources Announces Closing of a $300,105 Placement

ROUYN-NORANDA, QUÉBEC--(Marketwire - Oct. 6, 2011) - Radisson Mining Resources Inc. (TSX VENTURE:RDS) is pleased to announce that it completed a $300,105 private placement with CGE Resources Québec 2011 L.P. on October 5, 2011.

The placement consists of 2,223,000 units at a price of $0.135 per unit for a total of $300,105. Each unit consists of one flow-through common share and one-half warrant. Each whole warrant (non flow-through) entitles the holder to acquire one common share of Radisson Mining Resources Inc. ("Radisson") at a price of $0.25 during a period of 24 months following the date of issue.

The total gross proceeds (100%) of the flow-through shares sold under the flow-through offering will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) on the O'Brien/Kewagama project.

A 7% due diligence and processing fee will be paid to CGE Resources Québec 2011 L.P. in connection with the flow-through placement.


Radisson is a Quebec-based exploration company with an interest in seven properties in Northwestern Quebec and a property in Northwestern Ontario. Radisson's main asset, the O'Brien/Kewagama project, (the project) is located along the Cadillac Break. The project hosts the O'Brien Mine, which is considered the highest grade gold producer of the Abitibi greenstone belt (production of 1,302,000 tons at 0.448 oz/t from 1932 to 1955).

Previous exploration by the Company on the project resulted in the discovery of an indicated resource of 218,540 ounces (based on an indicated resource of 270,000 tons at an uncut grade of 0.56 oz/ton and an inferred resource of 182,000 tons at an uncut grade of 0.37 ounces) as defined in the Scott Wilson RPA NI 43-101 report of May 2007.

These resources, all outlined above the 650-metre level, are located over 800 metres east of the old O'Brien mine workings, and represent a new discovery of high grade mineralization of the same type mined and produced at the O'Brien gold mine. These resources are contained within a gold zone referred to as Zone 36.

In 2011, the Company carried out a successful diamond drilling program, resulting in a new discovery on the largely unexplored eastern portion of the project (Kewagama) (see press releases of June 1 and June 16, 2011).

The Company is currently planning a diamond drilling program that should start in October 2011.

The Company is also conducting an internal study and has begun planning an underground exploration and bulk sampling program on Zone 36.

Access will be via a 4.5x5-metre decline (15%) designed to reach the 350-, 500- and 750-foot levels. The planned length is currently in the order of 4,600 m.

The underground access will be used to evaluate and bulk sample Zone 36, explore for (via underground drilling) and discover any new gold zones, and carry out necessary mining and metallurgical feasibility studies.

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

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