Lincoln Mining Corporation (TSX VENTURE:LMG) (“Lincoln” or the “Company”) is pleased to announce that it has closed the previously announced private placement.
The Company issued a total of 5,556,177 units at a price of $0.17 per unit (“Units”) for total proceeds of $944,550. Each Unit is comprised of one common share of the Company and one half of one non-transferable common share purchase warrant. Each whole purchase warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.35 per share until June 14, 2013. Two insiders subscribed for 441,177 units for total proceeds of $75,000.
As compensation, qualified persons acting as finders in connection with the private placement (“Finders”) received a cash commission of 7% of the proceeds raised and non-transferable warrants (“Finders Warrants”) equal to 7% of the total number of Units sold to persons introduced to the Company by the Finder. Each such warrant entitles the holder to acquire one common share of the Company at a price of $0.35 per share until June 14, 2013. At the closing of the private placement, the Company issued a total of 332,500 Finders Warrants and paid a total of $56,525 in cash commissions.
All securities issued or issuable under the private placement will be subject to a four month hold period in Canada expiring October 15, 2011, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Lincoln intends to use the proceeds raised from the private placement to advance the work programs on its mineral projects and for general working capital and administrative purposes.
The Company also advises that drilling will commence within the next three weeks at La Bufa, and at the Oro Cruz project later this year. Four million dollars has already been committed to these programs as a result of the agreement with Elgin Mining Inc. which was announced on March 31, 2011.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove gold property in Nevada, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Gold US Corp., a Nevada corporation.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
