Jan. 18, 2011 (Filing Services Canada) -- Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is pleased to report it has completed a $321,500 offering that will be used for working capital purposes to advance exploration activities at its West Cedartree Gold Project in northwestern Ontario.
The funds were raised through the sale of 2,143,333 units priced at $0.15 per unit in a non-brokered private placement, subject to regulatory approval. Each unit consisted of one common share and one common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of $0.20 for 24 months from the closing date of January 18, 2011.
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 September, management concluded a successful summer diamond drill program which confirmed the discovery of the Robertson Gold Zone and intersected mineralization at depth on the Dubenski Gold Zone.
"With the closing of this financing we are well positioned to continue our exploration at the West Cedartree Gold Project," said Trevor R. Walker, President. "Work continues to expand the potential of the project, more specifically with a minimum of a 3,000 meter diamond drill project commencing in the near future. The program is initially targeting the newly discovered Robertson and historic McLennan Gold Zones."
All securities issued in connection with this financing have a minimum hold period of four months. No finder's fees or options were necessary for the offering.
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 47,289,304 common shares exclusive of this financing that are issued and outstanding. For additional information, please visit us at www.houstonlakemining.com.
Houston Lake Mining Inc.
Trevor R. Walker,
Tel: 705.897.7622 Fax: 705.897.7618
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. 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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