Stronghold Metals Inc.
TSX VENTURE : Z

Stronghold Metals Inc.

August 03, 2011 16:25 ET

Stronghold Announces Closing of $3,353,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 3, 2011) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

Stronghold Metals Inc. ("Stronghold" or the "Company") (TSX VENTURE:Z) - Further to the Company's news releases of June 29 2011 and July 19, 2011, the Company announces it has closed its non-brokered private placement (the "Private Placement") of 8,383,500 units (each a "Unit") at a price of $0.40 per Unit for total gross proceeds of $3,353,000. Each Unit consists of one common share and one-half of one transferable share purchase warrant (each whole warrant a "Warrant"). Each Warrant entitles the holder thereof to purchase an additional common share (a "Warrant Share") at a price of $0.55 per Warrant Share until July 28, 2013, being 2 years from the closing of the Private Placement.

M Partners Inc. and several other finders (collectively the "Finders") assisted the Company in placing the Private Placement, in consideration of which the Company paid the Finders cash fees of $195,975 and issued the Finders 565,313 compensation warrants entitling the Finders to acquire one common share of the Company for each compensation warrant at a price of $0.55 per share until July 28, 2012.

All securities issued under the Private Placement are subject to a hold period expiring on November 29, 2011, being 4 months and 1 day after closing.

The proceeds of the Private Placement will be used to finance the advancement of the Company's Eagle Mountain project in Guyana, to search for and negotiate the acquisition of additional complementary projects and for general working capital.

Ioannis (Yannis) Tsitos, President and Chief Executive Officer of the Company stated: "We are very pleased to close this financing, which provides us with the necessary funds to continue our ongoing drill program at Eagle Mountain in Guyana. The financing was led by M Partners Inc. and we welcome the lead order from Sprott Asset Management Inc., which continues to be a tremendous supporter of the Company. In addition we welcome several other new institutional investors to the Company. The Offering was heavily oversubscribed allowing the Company to increase the offering size to accommodate these new shareholders. We expect a strong flow of news over the next few months and look forward to advancing our flagship Eagle Mountain project."

We seek Safe Harbor.

On behalf of The Board of Directors of Stronghold Metals Inc.

"Ioannis (Yannis) Tsitos"
President, CEO & Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.

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 release.

Contact Information

  • Stronghold Metals Inc.
    Ioannis (Yannis) Tsitos
    President, CEO & Director
    +1 604.806.0916
    +1 604.806.0956 (FAX)
    www.strongholdmetals.com