Cedar Mountain Announces Completion Of Financing To Raise $4,347,000 And Grant Of Options
Vancouver, British Columbia, March 9, 2011 – Cedar Mountain Exploration Inc. (TSXV:CED) (the “Company”) is pleased to announce that it has completed a non-brokered private placement (the “Private Placement”) of 17,389,000 units (each a “Unit”) at a price of $0.25 per Unit raising gross proceeds of $4,347,250, further to the Company’s press releases dated February 18, 2011 and February 28, 2011. Each Unit consists of one common share (a “Share”) in the capital of the Company and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant is exercisable to acquire one additional common share in the capital of the Company at an exercise price of $0.35 per share until March 8, 2012 and thereafter at an exercise price of $0.45 per share until March 8, 2013.
In consideration for services provided to the Company in connection with the Private Placement, the Company has paid, to arm’s length parties, aggregate cash fees of $186,935 and issued an aggregate of 747,740 common share purchase warrants (each a “Finder’s Warrant”) as payment of finder’s fees. Each Finder’s Warrant is exercisable to purchase one common share of the Company at an exercise price of $0.26 per share until March 8, 2013.
Proceeds from the Private Placement will be used for exploration of the Company’s Kelly Creek Gold Project in Alaska and for general working capital purposes.
All of the securities issued in connection with the Private Placement are subject to a four month hold period under applicable securities laws and the rules of the TSX Venture Exchange, expiring July 9, 2011.
The Company also announces that its Board of Directors has granted an aggregate of 450,000 stock options to directors, officers and consultants of the Company, including to a consultant performing investor relations activities, pursuant to the Company’s stock option plan. Each stock option is exercisable to acquire one common share of the Company at a price of $0.28 per share for a term of five years. The stock options are subject to regulatory approval.
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
For more information on Cedar Mountain Exploration Inc., please visit the Company’s website:
www.cedarmountainexp.com or contact:
VP Business Development
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer
Tel: (403) 283-0001
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