Ridgemont Iron Ore Corp.
TSX VENTURE : RDG

December 10, 2010 16:02 ET

Ridgemont Closes $1.2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) - Ridgement Iron Ore Corp. (TSX VENTURE:RDG) - 

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES

Ridgement Iron Ore Corp. ("Ridgemont" or the "Company") is pleased to announce that today it closed a non-brokered private placement of 2,000,000 flow-through shares of the Company ("Flow-Through Shares") at a price of $0.60 per Flow-Through Share for gross proceeds of $1,200,000 (the "Flow-Through Private Placement"). Each Flow-Through Share qualifies as a "flow-through share" for the purposes of the Income Tax Act (Canada). In connection with the Flow-Through Private Placement, Ridgemont paid a finder's fee equal to 5% of the gross proceeds received. Ridgemont also issued to the finder non-transferrable warrants ("Finder's Warrants") equal to 5% of the Flow-Through Shares sold through the Flow-Through Private Placement. Each Finder's Warrant may be exercised for one common share of Ridgemont at an exercise price of $0.60 per Finder's Warrant for a period of two years from the closing date.

All securities issued pursuant to the Flow-Through Private Placement are subject to a four month hold period. 

The funds raised from the Flow-Through Private Placement will be used by Ridgemont for exploration expenditures on its properties and specifically will be used to conduct a drilling program on the Redford iron ore property, which will constitute Canadian exploration expenditures (as defined in the Income Tax Act (Canada)) and will be renounced for the 2010 taxation year.

About Ridgemont

Ridgemont is an exploration and development company in Canada and has an option to acquire up to 75% interest in the Redford iron ore property, comprised of 26 claims covering 10,821 hectares and located 22 kilometres northeast of Ucluelet, in the Alberni Mining Division, Vancouver Island, British Columbia.

RIDGEMONT IRON ORE CORP.

On behalf of the Board

Mark J. Morabito, President & CEO

Information set forth in this news release may involve forward-looking statements under applicable securities laws, including statements about the offering of Flow-Through Shares and use of proceeds therefrom. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; and the volatility of our common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ridgement Iron Ore Corp.
    Mark Morabito
    President & CEO
    604-681-8030
    604-681-8039 (FAX)