Houston Lake Mining Raises $800,000 In A Flow-Through Private Placement
Proceeds To Be Used For Exploration At West Cedartree Gold Project
Sudbury, Ontario CANADA, August 25, 2008 /FSC/ - Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is pleased to report it has completed a $800,000 offering that will be used to continue exploration activities at its West Cedartree Gold Project in Ontario.
The funds were raised through the sale of 1,333,333 flow-through units priced at $0.60 per unit in a non-brokered private placement, subject to regulatory approval. Each unit consisted of one flow-through common share and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of $0.70 for 24 months from closing.
Proceeds from the offering will finance ongoing exploration activities at Houston Lake's 100% owned and 100% optioned gold properties near Kenora, Ontario. The Company has eight contiguous properties that comprise its West Cedartree Gold Project. In April, management concluded a highly successful winter diamond drill program at the Dubenski property, and a new round of drilling is under way at the Dogpaw Lake property.
"With the closing of this financing we are now well positioned to continue our aggressive exploration on our West Cedartree Group of properties," said Grayme Anthony, President and CEO. "Drilling continues to expand the potential gold resource on the Dogpaw Lake property and we look ahead to further drill definition of gold mineralization at Dubenski."
All securities issued in connection with this financing have a hold period of four months. A finder's fee of $64,000 (8% of the gross proceeds) and 106,666 agent's options (8% of the total issuance) were paid pursuant to the offering. Each agent's option is exercisable at an exercise price of $0.70 into one common share and one broker warrant for a period of two years, with each broker warrant exercisable at a price of $0.70 into one common share for a period of two years.
About Houston Lake Mining Inc.
Houston Lake is an advanced, vertically integrated resource exploration company. The Company is actively exploring for gold, platinum group metal and rare metal deposits in northwestern Ontario with a strategic focus on the West Cedartree gold project. Houston Lake's objective is to become a gold producer by surface mining its West Cedartree gold project and developing its 100% owned and optioned properties. The Company has a total of 29,435,246 common shares issued and outstanding exclusive of the announced financing. For additional information, please visit us at www.houstonlakemining.com.
Houston Lake Mining Linx Partners Ltd.
E. Grayme Anthony P.Geo., MBA Wanda Cutler President and CEO
Tel: 705-897-7622 Tel: 416-303-6460
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.
Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) http://www.houstonlakemining.com
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