Houston Lake Mining Inc. (Pink Sheets: HLKMF) recently announced that it is raising a total of C$2.5 million in a non-brokered flow-through private placement financing with Max Capital Markets Ltd., subject to regulatory approval.
The proceeds of the private placement will be utilized to bring the historic resource on the recently acquired Dubensky property up to “NI-43-101” standards and to continue exploration and drilling on the company’s 100 percent owned and optioned gold properties located near Sioux Narrows, Ontario.
According to a press release, HLKMF is offering up to 1,250,000 common share units and 1,086,957 flow-through shares for total gross proceeds of C$2.5 million. The 1,250,000 units have a subscription price of C$1.00 per unit, each unit being comprised of one common share and one half of a warrant exercisable at C$1.25 for a period of 24 months. The 1,086,957 flow-through shares have a subscription price of C$1.15. The offerings have a hold period of four months and are subject to regulatory approval.
The company will pay a finder’s fee to Max Capital Markets Ltd. of Toronto, Ontario consisting of units and flow-through shares which are completed equal to 8 percent of the gross proceeds of the subscriptions payable in cash and 8 percent finder’s warrants which will be exercisable to acquire common shares of HLKMF at C$1.25 for a period of 24 months after the closing date.
In the spring of 2006, HLKMF realized its first gold production revenues of C$131,840 through the third party processing of a 1,042 tonne bulk sample from its West Cedartree Gold Project in the Kenora Mining District, Ontario. Also during 2006, the company optioned the Tib Lake Platinum Palladium Property to Magma Metals Ltd.
The company’s common stock was priced at $1.02 per share earlier today on no volume.
HLKMF’s is a vertically integrated resource company actively exploring for gold, platinum group metals and rare metals with a strategic focus on northwestern Ontario. The company’s objective is to become a gold producer in the short term and apply the profits towards the development of its 100 percent owned and optioned properties.
