Cedar Mountain Announces $3 Million Non-Brokered Private Placement
Vancouver, British Columbia - Cedar Mountain Exploration Inc. (CED: TSX-V) (Cedar or the “Company”) is pleased to announce that the Company has arranged a non-brokered private placement to raise gross proceeds of up to $3 million by the issuance of 12,000,000 units (the “Units”) of the Company at a price of $0.25 per Unit. Each Unit will consist of one common share and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one additional common share of the Company at a purchase price of $0.35 per share for a period of 12 months from the date of closing (the “Closing Date”) and thereafter at a price of $0.45 per share until 24 months from the Closing Date, subject to acceleration as described below.
In the event that, after the four month hold period on the Units has expired, the average closing price of the common shares of the Company is greater than $0.55 per share for any period of 10 consecutive trading days during the term of the Warrant, the Company may at its sole option, provide notice of such event to the holders of the Warrants and thereafter the Warrants will expire and cease to be exercisable on the date which is 30 calendar days after the notice is deemed delivered to the holders of the Warrants by the Company.
The Company may pay a finder’s fee in cash or securities in connection with the Private Placement on terms to be negotiated by the Company.
The Company intends to use the proceeds from the private placement for exploration of Cedar’s Kelly Creek Gold Project in Alaska and general working capital purposes. The private placement is subject to the approval of the TSX Venture Exchange.
The Kelly Creek Property is located on Seward Peninsula, Alaska 145 km north of Nome. Kelly Creek is a drill-permitted early-stage gold exploration property comprising 105,280 acres (42,605 hectares) that cover an entirely new gold district. Historic results indicate the presence of disseminated gold deposits in metasedimentary rocks. These deposits have similarities to disseminated gold deposits in Nevada and are a new type for the region. For a complete review of the current Kelly Creek Project status please see Cedar press release dated January 25th, 2011.
The Company’s disclosure of a technical or scientific nature in this press release has been prepared by Dr. Travis Hudson, registered geologist, who serves as a Qualified Person under the definition of National Instrument 43-101. The Kelly Creek project represents an early stage property and does not contain any mineral resources as defined by National Instrument 43-101.
CEDAR MOUNTAIN EXPLORATION INC. (CED: TSX-V) is a junior mineral exploration focused on gold resources in North America. Cedar is a member of the Discovery Group of Companies: www.discoveryexp.com
ON BEHALF OF THE BOARD
Chief Executive Officer
Tel: (403) 283-0001
For more information on Cedar Mountain Exploration Inc., please visit the Company’s website:
www.cedarmountainexp.com or contact:
VP Business Development
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 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, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and 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 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 continuous disclosure filings that are available at www.sedar.com