Orestone Completes Two Million Dollar Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - Orestone Mining Corp. (TSX VENTURE:ORS) (the "Company") is pleased to announce that the non-brokered private placement announced on September 25th and amended September 27th and October 10th, 2012 has closed. The Company has issued 15,875,000 units ("Units") at a price of $0.10 per Unit and 3,300,000 units ("Flow-Through Units") at a price of $0.125 per Flow-Through Unit for aggregate gross proceeds of $2,000,000 (the "Private Placement"). Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, an "A Warrant"). Each A Warrant is exercisable for one common share of the Company at a price of $0.15 until October 23, 2013. Each Flow-Through Unit consisted of one common share of the Company issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant (each whole common share purchase warrant, a "B Warrant"). Each B Warrant is exercisable for one common share of the Company at a price of $0.17 until October 23, 2013.
The Company has paid to certain arm's length finders a fee of 7 per cent of the aggregate gross proceeds of the Private Placement consisting of $73,325 in cash and 220,500 units of the Company, each finder's unit consisting of one common share of the Company and one half of one non-transferable common share purchase warrant (each whole warrant, a "Finder's Unit Warrant"). The Finder's Unit Warrants entitle the holders thereof to purchase one common share of the Company at an exercise price of $0.15 or $0.17 as the case may be, until October 23, 2013. In addition, the Company has issued 931,000 non-transferable finder's warrants ("Finder's Warrants") representing an amount equal to 7 per cent of the aggregate number of Units and/or Flow-Through Units sold to subscribers introduced to the Company by such finder, each Finder's Warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.10 or $0.125, respectively, until October 23, 2013.
All securities issued under the Private Placement, including the common shares issuable pursuant to the exercise of the A Warrants, B Warrants, Finder's Unit Warrants and Finder's Warrants, will be subject to a four-month hold period which will expire on February 24, 2013.
The net proceeds of the Private Placement will be used for exploration and development of the Company's mineral property portfolio and for general corporate purposes.
Within British Columbia, Canada, Orestone has recently discovered a large copper/gold porphyry system on the 100% owned Captain Project and is seeing increased interest in the Stewart Mining Camp where the Company's 50 square kilometer Todd Creek (51%) asset is located. In addition, the Company has initiated a global project search focused on the acquisition of high potential assets to compliment the Company's current portfolio. For additional information please visit www.orestone.ca.
ON BEHALF OF ORESTONE MINING CORP.
David Hottman, President and CEO
This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Orestone Mining Corp.
President & CEO