RJZ Mining Corporation
TSX VENTURE : RJZ

November 30, 2006 17:46 ET

RJZ Completes $1,080,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 30, 2006) - RJZ Mining Corporation ("RJZ") (TSX VENTURE:RJZ): Further to press releases issued on October 26, 2006 and November 23, 2006, Alan A. Johnson, President and Chief Executive Officer of RJZ, announces that RJZ completed the closing of a non-brokered private placement of 9,000,000 common shares at a price of $0.12 per share for gross proceeds of $1,080,000. All of the common shares issued in connection with this private placement are subject to a four-month hold period (until April 1, 2007).

After giving effect to the private placement, RJZ has 22,055,000 common shares issued and outstanding. Directors and insiders of RJZ, or companies controlled by them, subscribed for a total of 5,310,000 common shares. Of this amount, 3,060,001 common shares were placed in escrow, with the first release to occur on May 30, 2007, as to 1,530,003 common shares, and the second release to occur on November 30, 2007, as to 1,529,998 common shares. The completion of the private placement is subject to final TSX Venture approval. RJZ has determined that exemptions from the various requirements of TSX Venture Policy 5.9 and OSC Rule 61-501 are available for the issuance of the shares.

RJZ also announces that Telelink International Ltd., Troybell Inc. and Longview Capital Partners Inc. acquired 1,500,000 common shares, 1,500,000 common shares and 1,800,000 common shares, respectively, pursuant to the private placement. As a result, Telelink, together with Mikhail Mogutov, who owns and controls Telelink, and companies controlled by Mikhail Mogutov, beneficially owns 4,000,000 common shares (representing 18.1% of RJZ's outstanding common shares). Telelink acquired the securities of RJZ for investment purposes. Depending on market conditions, Telelink has no current intention to increase its beneficial ownership of RJZ. Also as a result, Troybell, together with Leonid Skoptsov, who owns and controls Troybell, beneficially owns 4,000,000 common shares (representing 18.1% of RJZ's outstanding common shares). Troybell acquired the securities of RJZ for investment purposes. Depending on market conditions, Troybell, has no current intention to increase its beneficial ownership of RJZ. Also as a result, Longview beneficially owns 4,300,000 common shares (representing 19.5% of RJZ's outstanding common shares). Longview acquired the securities of RJZ for investment purposes.

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

Contact Information

  • RJZ Mining Corporation
    Alan Johnson
    Chief Executive Officer
    (403) 239-0730