URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

January 31, 2011 09:00 ET

URSA Major Minerals Receives Approval For Brokered Private Placement for up to $2,472,000

TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES.   

URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) is pleased to announce that it has received approval from the Toronto Stock Exchange for its previously announced (January 26, 2011) offering of up to 7,500,000 flow-through common shares ("FT Common Shares") at a price of $0.20 per FT Common Share for gross proceeds of $1,500,000, and up to 5,400,000 units (the "Units") at a price of $0.18 per Unit for gross proceeds of up to $972,000, for total aggregate gross proceeds of $2,472,000 (the "Offering").  Each Unit will consist of one common share of the Company (the "Common Share") and one half common share purchase warrant (a "Warrant").  Each Warrant will entitle the holder to acquire one Common Share at a price of $0.24 per share for the first year following the closing date, and $0.30 per share for the second year following the closing date. Loewen, Ondaatje, McCutcheon Limited has agreed to act as agent for and on behalf of the Company (the "Agent"), on a best efforts agency basis with respect to the Offering, pursuant to which they will receive an aggregate cash commission of 7% of the gross proceeds raised in the Offering, as well as such number of broker warrants (the "Broker Warrants") as is equal to 7% of the aggregate number of Units and FT Common Shares issued pursuant to the Offering.  Each Broker Warrant shall be exercisable to acquire one Common Share at a price of $0.19 for a period of 24 months from the closing date.

Any securities to be issued pursuant to the Offering will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the Toronto Stock Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.

The proceeds of the offering will be used for continuing exploration on the Company's existing properties and general administrative expenses.  Richard Sutcliffe, URSA Major's President and CEO stated, "This financing will provide the Company with funds to accelerate our current exploration program.  The Company will drill down plunge from the Shakespeare East Deposit where we are currently testing a strong borehole EM conductor down-plunge from known mineralization.  In addition, we will continue drilling at the Nickel Offsets, where we have outlined high grade nickel-copper-platinum group metal targets from drilling in late 2010.  We will also test targets for nickel, copper and platinum group metals on our Thunder Bay properties."

Special Shareholders Meeting - URSA Major has scheduled a special meeting of shareholders for March 3, 2011, in response to a requisition for a shareholder meeting received from Inspiration Mining Corporation ("ISM") dated October 29, 2010.  ISM, according to their press release dated January 27, 2011, is a 19.7% shareholder in URSA Major (based on the number of issued and outstanding shares of URSA Major prior to completion of the Offering).  ISM requisitioned the meeting for the purpose of "the election of a board of directors as proposed by [ISM]". 

URSA Major has been advised that ISM has retained counsel to bring a motion as soon as possible to prevent URSA Major  from proceeding with the  private placement. URSA Major has been advised that the motion will ask the court to make closing of the private placement conditional on URSA Major obtaining shareholder approval for the private placement at the upcoming special meeting of shareholders. URSA Major will seek its own counsel to advise with respect to this motion.

About URSA Major Minerals Incorporated

About URSA Major Minerals - URSA Major is a Canadian mining company with two nickel sulphide projects containing significant NI43-101 compliant nickel and copper reserves and resources. The Company is focused on maintaining profitable operations at the Shakespeare Mine and growing its nickel, copper and platinum group metal (PGM) deposits through exploration and development, primarily in Ontario, Canada.

Address: 8 King Street East, Suite #1300, Toronto, Ontario, Canada M5C 1B5
   
Symbol & Exchange: UMJ – TSX

This release was prepared by management of the Company who takes full responsibility for its contents.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.                       

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    416-864-0615
    or
    URSA Major Minerals Incorporated
    Alison Tullis
    Investor Relations Manager
    416-864-0615
    atullis@bellnet.ca
    www.ursamajorminerals.com