Smash Minerals Corp.
TSX VENTURE : SSH

Smash Minerals Corp.

June 27, 2011 08:30 ET

Smash Minerals Corp. Announces Private Placement of Up to C$10 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Smash Minerals Corp. (the "Company" or "Smash") (TSX VENTURE:SSH) announces that it has engaged NCP Northland Capital Partners Inc. (the "Agent") to act as lead Agent on behalf of a syndicate in connection with a proposed private placement for gross proceeds of up to C$10,000,000 (the "Offering"). The proceeds will be raised by the issuance of a combination of common shares ("Shares") and flow-through shares ("FT Shares") of Smash at a price of $1.05 per Share and $1.20 per FT Share, subject to a maximum of $6 million in FT Shares. The Offering may be increased for up to an additional $1,500,000 in Shares offered on the same terms and conditions, up to the Closing Date.

The proceeds of this Offering will be used to accelerate the advancement of the Company's Yukon gold exploration project and for general working capital purposes.

In connection with the Offering, the Company will pay to the Agent a cash commission equal to 7% of the aggregate gross proceeds from the Offering and issue to the Agent compensation options, exercisable for a period of eighteen months from the closing date of the Offering, to acquire that number of common shares of the Company equal to 7% of the aggregate number of Shares and FT Shares issued pursuant to the Offering exercisable at $1.20 per common share.

The closing of the Offering is expected to occur on or about July 12, 2011 or such earlier or later date as may be agreed upon by Smash and the Agent.

Smash Minerals Corp.

Smash Minerals Corp is a junior exploration company undertaking gold exploration on its Whiskey Gold Property in the Yukon Territory, Canada. Smash holds one of the largest claim blocks in the Yukon, with 4,177 claims extending over a distance of 60 km for a total of 846 square kilometers and lies due east of claims held by Kinross Gold who secured its White Gold District holding in 2010 by acquiring Underworld Resources.

Smash's exploration team, led by Adrian Fleming, made the first significant gold discovery in the White Gold District in the Yukon Territory, Canada with Underworld Resources in 2008. Smash has commenced its Summer 2011 field program on its 100% owned Whiskey Gold Property, following completion of its camp and the receipt of a Class 3 Land Use Permit.

Smash's 2011 field program is designed to further identify preliminary gold targets for an initial phase of drilling in August and September. The current program leverages a comprehensive property wide ridge sampling program undertaken in 2010. Over 7,000 soil samples were collected, followed up by a short phase of field checking. This work led to the identification of three primary targets with soil geochemistry, alteration and mineralization at surface similar to the Golden Saddle discovery made by Underworld Resources in 2008.

ON BEHALF OF THE BOARD

Adrian W. Fleming, CEO and Director

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The common shares of Smash Minerals Corp. have not been and will not be 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 registration.

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

Contact Information

  • Smash Minerals Corp.
    Adrian W. Fleming
    CEO and Director
    (604) 638-8063
    (604) 648-8105 (FAX)