Sudbury, Ontario CANADA, September 26, 2011 /FSC/ - Houston Lake Mining Inc. (HLM - TSX Venture, HLKMF - OTCBB_Pink_Sheets), is pleased to report that the Company has received a positive response from a major creditor for a Shares for Debt Financing. Houston Lake proposes to issue up to 3,908,046 common shares at price of $0.06. The financing is subject to regulatory approval and would have a hold period of four months.
The price of $0.06 represents a 20% discount to the day's closing price of $0.075. A maximum discount of 25% is allowable under the regulation. The $234,483 debt is owed to a company owned by one non-arms length individual. The non-arms length portion of the proposed financing would therefore be a maximum of 3,908,046 common shares.
Management believes that the proposed Shares for Debt financing would strengthen the balance sheet and increase the attractiveness of the Company for future financings.
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 49,532,637 common shares issued and outstanding. For additional information, please visit us at www.houstonlakemining.com.
Houston Lake Mining Inc.
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.
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Source: Houston Lake Mining Inc. (TSX-V: HLM) (Pink Sheets: HLKMF) http://www.houstonlakemining.com
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