Rocmec closes financing and issues shares as quarterly interest payment on debentures
Vaudreuil-Dorion (Quebec), Novembre 2nd, 2012– Rocmec Mining inc. (the "Corporation" or "Rocmec") (TSX-V Symbol: RMI), announces the closing of the first tranche of a private placement of 900,000 units at a price of $0.15 per unit, for gross proceeds totaling $135,000. Each unit is comprised of one common share and one half of one common share purchase warrant of the company. Each warrant entitles the holder to purchase one additional common share of the company at a price of $0.20 per common share for a period of 18 months from the date of issuance of the said units, up May 2nd, 2014.
In addition, the company announces that it has issued 272,675 common shares of the Company priced at $0.115 as quarterly interest payments totaling $31,357.62 on outstanding debentures as amply described in the press release dated October 19th, 2012. Such interest is payable quarterly as approved by the TSX Venture Exchange on May 10th, 2012 and publicly announced by way of a press release.
The above-mentioned common shares are subject to a four month hold period from their respective dates of issuance. With respect to the shares issued in regards to the private placement, the expiry date is March 3rd, 2013, whereas the expiry date for shares issued in regards to interest on debentures is February 26, 2013.
The proceeds from the Private Placement will be used for working capital purposes. No commissions in cash or securities were paid in relation to the above mentioned private placements.
A director of the Corporation subscribed for a total of 26,666 units as part of the Common Share Private Placement (the "Insider Participation"), constituting a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Insider Participation is exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that neither the fair market value of such Insider Participation nor the consideration paid by such person exceeds 25% of Rocmec's market capitalization. Rocmec has not filed a material change report 21 days prior to the closing of the Common Share Private Placement as participation of the insider had not been established at that time.
Rocmec is active in the exploration and the development of gold resources in Quebec and Peru. The Corporation holds a gold property with resources recognised in accordance with NI43-101, a modular treatment plant and also an exclusive license for the thermal fragmentation mining method for exploiting narrow-vein ore deposits.
The company's growth strategy is based on:
• The development of its gold deposits with the objective of producing revenue from its operations;
• Increasing the value of its mining assets by prioritizing the exploration targets; and
• The commercialisation and employment of its thermal fragmentation technology.
For additional information:
John Stella, Investor relations (514) 718-7976
Neither 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 press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration and production activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation 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 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, continued availability of capital and financing, and general economic, market or business conditions.
Corporation Minière ROCMEC Mining Inc. 162 Saint-Charles Avenue, Vaudreuil-Dorion (Quebec) J7V 2L1
Tel: (450) 510-4442 Fax: (450) 510-9901 www.rocmec.com