DUMONT NICKEL INC. (DNI: TSX-Ven, DG7: Frankfurt)
TORONTO, Dec. 30 /CNW/ - Dumont Nickel Inc. (DNI:TSX-Ven, DG7:FSE) is pleased to announce that it has completed the first tranche of a non-brokered private placement of flow-through and non-flow-through shares, with arm's length and non-arm's length parties, for total proceeds of $137,500, pursuant to terms announced December 18, 2008. The securities issued under the private placements are subject to a four-month hold period expiring on May 1, 2009.
The financing consisted of (i) placement of 1,180,000 units at a price of 5 cents per unit, for gross proceeds of $59,000, each unit consisting of five shares at one cent each, comprising four flow-through shares and one common share, and one common share purchase warrant entitling the holder to purchase an additional common share of the company at a price of five cents for a period of twelve months from closing; and (ii) placement of 7,850,000 flow-through shares at a price of one cent per share, for gross proceeds of $78,500. Insiders of DUMONT participated in the placements to an aggregate of $34,000.
Proceeds of the financing will be applied toward ongoing work on DUMONT's polymetallic shale Properties in Alberta and Saskatchewan, and toward meeting short term operating working capital requirements.
Dumont has made steady progress during the past few months advancing work on its 2,444 square kilometer Alberta Property. The progress includes completion of a Technical Report for the Property (press November 10, 2008) which provides a solid basis upon which to expand with future field work and studies. The Report identified six polymetallic 100-300 sq km systems on the Property, which can be regarded as six distinct sub-properties with potential for hosting near-surface Mo-Ni-U-V-(Zn-Cu-Co-Ag-Au) enrichment zones in black shales.
Highlights from the Report include recognition of good potential for the existence of sedimentary exhalative - SEDEX style - sulfides at several locations on the Property; and the existence of two polymetallic potential mineral deposits hosted in black shale (under Section 2.3(2) of NI-43-101), one of which comprises 1.2-1.3 billion short tons extending over 26 square kilometers, and the other is 109-132 million short tons extending over 4.5 square kilometers. They are both partly drilled, are partly exposed, are open in three directions, and hold potential for considerable expansion. The remaining four sub-properties have not been drill tested, although one of them is intermittently exposed and holds potential for hosting an additional mineralized volume.
Consolidation of historic data from the Alberta Property has been ongoing since October with particular focus on geological mapping records of exposures of sulfides over locations previously not recognized as being part of a broader mineralized system. Field work previously planned for October to verify and sample some of these locations was necessarily deferred to the 2009 field season, and will benefit from an ongoing structural synthesis of the entire Property intended to better localize what are believed to be corridors of volcanic venting associated with metallic mineralization. The Property was expanded to approximately 2,536 square kilometers in early November to secure the projected extension of one of the polymetallic zones near the Property's south boundary.
In addition to the above, DUMONT announces its intention to conduct an additional non-brokered private placement financing, subject to regulatory approvals, consisting of up to 30 million units at a price of 1 cent per unit, for gross proceeds of up to $300,000, each unit consisting of one common share and one common share purchase warrant entitling the holder to purchase an additional common share of the company at a price of 5 cents per share for a period of twelve months from closing. Proceeds of the financing will be applied toward ongoing work and planned field work on DUMONT's polymetallic shale Properties in Alberta, and toward meeting short term operating working capital requirements. Insiders might participate in the financing.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. DNI - TSX Venture DG7 - Frankfurt Issued: 106,898,010 (120,648,010 post financing)