Nov. 25, 2010 (Canada NewsWire Group) --
TORONTO, Nov. 25 /CNW/ - Elgin Mining Inc. (83 Yong Street, #200, Toronto, Ontario M5C 1S8; TSX-V: ELG) (formerly Phoenix Coal Inc.) ("Elgin" or the "Company") reported that it has acquired 1.8 million common shares of Auracle Resources Inc. ("Auracle") by way of a share purchase agreement with certain shareholders of Auracle at a price of $0.02 per common share. Elgin has also acquired 10 million units ("Units") of Auracle by way of a private placement at a price of $0.20 per Unit. Each Unit consists of one common share of Auracle and one share purchase warrants ("Warrants"). Each Warrant entitles the Company to acquire one common share until November 25, 2011 at an exercise price of $0.30 per common share. Total consideration for the investments was approximately Cdn$2.0 million. The securities acquired may be subject to certain escrow release provisions in accordance with Auracle's application to list its common shares on the TSX Venture exchange.
Elgin now holds 11,800,000 common shares of Auracle, representing approximately 46% of Auracle's issued and outstanding voting securities. Assuming conversion of the Warrants, Elgin would hold 21,800,000 common shares of Auracle, which would represent an ownership interest of approximately 60% of Auracle. The common shares of Auracle do no trade on any stock exchange.
Elgin has acquired the common shares of Auracle for investment purposes only. Elgin may acquire additional common shares of Auracle but does not have any present intention of doing so.
About Elgin Mining Inc.
Elgin Mining Inc. is located in Toronto, Ontario and is currently evaluating the potential acquisition of assets in the global natural resource sector. For additional information, visit www.elginmining.com.
Certain information set forth in this press release contains "forward-looking information" under applicable Canadian securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information which include management's assessment of Elgin's future plans and operations and is based on Elgin's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking information may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. This information is not a guarantee of future performance and undue reliance should not be placed on it. Such forward-looking information necessarily involve known and unknown risks and uncertainties, which may cause Elgin's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Elgin undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
|Brian Morales||David Feick|
|Elgin Mining Inc.||The Equicom Group, Investor Relations|
|(416) 317-3132||403 218 2839|