DGAP-News: United Mining Group: UMG Engages Pope&Company as Agent for up to $8,000,000 Financing
(firmenpresse) - DGAP-News: United Mining Group / Key word(s): Miscellaneous
United Mining Group: UMG Engages Pope&Company as Agent for up to
$8,000,000 Financing
02.12.2010 / 15:30
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UMG Engages Pope&Company as Agent for up to $8,000,000 Financing
December 1, 2010, Vancouver, British Columbia: United Mining Group, Inc.
(the 'Company'), (TSX:UMG Frankfurt:UM8; OTCQX: UMGZF) announces that it
has entered into an engagement agreement with Pope&Company Limited (the
'Agent') to raise up to $8,000,000 by way of a commercially reasonable best
efforts private placement (the 'Private Placement'). The Private Placement
provides further funding for the Company's ongoing work program, primarily
on the Crescent Mine, and for general corporate purposes.
The Private Placement will consist of the issuance of up to 8,888,888 units
('Units') at a price of $0.90 per Unit (the 'Unit Price'). Each Unit
consists of one common share (a 'Common Share') and one half of one common
share purchase warrant (a 'Warrant'). Each whole warrant entitles the
holder thereof to purchase one additional Common Share (a 'Warrant Share')
of the Company at a price of $1.25 per Warrant Share for a period of two
(2) years from the closing date of the Private Placement.
In the event that the Common Shares of UMG are traded on the Toronto Stock
Exchange ('TSX') at a daily volume weighted average price of $1.75 or more
for 15 trading days out of any 20 consecutive trading days prior to the
Expiry Date (the 'Acceleration Event'), the Warrant will expire on the
earlier of the Expiry Date and 4:30 p.m. (Pacific Time) on the date which
is 30 calendar days after UMG provides notice to the holders of the Warrant
that the Acceleration Event has occurred, provided that such notice cannot
be provided until the four month hold period has expired
The Company will pay the Agent a cash commission of 7% of the number of
Units sold under the Private Placement. In addition, the Agent will, upon
closing, receive agent's warrants ('Agent's Warrants') equal in number to
7% of the number of Units sold under the Private Placement. Each Agent's
Warrant will entitle the Agent to purchase one Common Share at the price
the greater of either the Unit Price or the lowest price permitted by the
TSX for a period of two (2) years from the closing date of the Private
Placement.
Charles Pitcher, CEO of UMG, commented, 'Pope&Company is an excellent
partner to assist UMG with the equity raise currently under way as well as
in the longer term, to help us grow the business. They bring both a strong
distribution network and excellent investment banking advice.'
The Private Placement is scheduled to close on or about December 17, 2010
and is subject to a number of conditions including receipt of all necessary
corporate and regulatory approvals, including the approval of the TSX. All
securities issued in connection with the Private Placement will be subject
to a statutory hold period of four months plus a day from the date of
issuance in accordance with applicable securities law legislation.
About United Mining Group
United Mining Group is a profitable, vertically integrated mining company
with operations in Idaho, USA. The Company offers a full suite of mining
services including contract mining to silver miners in the district. The
Company owns its own custom welding and fabrication shop allowing it to
repair/rebuild equipment for its own use and for outside mining companies.
The Company is currently earning, through development and operations, an
80% interest in the Crescent Silver Mine adjacent to the Sunshine Silver
Mine in the Silver Valley. The Crescent Mine has historically produced 25
million ounces of silver at an average grade of 27.3 opt (SRK Consulting
43-101 report, March 1, 2010). UMG currently has an indicated resource of
6.1 million ounces silver (324,000 tons grading 18.7 opt silver) and
additional inferred resources of 4.1 million ounces silver (211,000 tons
grading 19.5 opt silver).
UMG is committed to building a senior silver-producing mining company based
on aggressive exploration and development of the highly-prospective current
land position at Crescent and through the acquisition of additional silver
interests.
For more information about the Company, please visit:
www.unitedmininggroup.com.
On behalf of the board of directors of United Mining Group, Inc.,
'Charles Pitcher'
Charles Pitcher
Chief Executive Officer
FOR MORE INFORMATION, PLEASE CONTACT:
Greg Stewart,
President&Chief Operating Officer
Tel: 208.682.9018
gstewart(at)unitedmininggroup.com
FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements, which address future events and conditions, which are subject
to various risks and uncertainties. Forward looking statements in this
press release include that we can close a brokered private placement, that
we are building a senior silver-producing mining company, that we will have
aggressive exploration and development of our current land position at
Crescent, that our land is the highly-prospective for mining and that we
will make acquisitions of additional silver interests. The Company's actual
results and financial position could differ materially from those
anticipated in such forward-looking statements as a result of numerous
factors, some of which may be beyond the Company's control. These factors
include: results of exploration activities and development of mineral
properties, fluctuations in the marketplace for the sale of minerals, the
inability to implement corporate strategies, the inability to obtain
financing, currency fluctuations, general market and industry conditions
and other risks disclosed in the Company's filings with Canadian Securities
Regulators. Past production of minerals and encouraging exploration results
are not necessarily indicative of a commercially exploitable resource.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-looking statements.
The Company expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
The TSX Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of the content of this news release.
End of Corporate News
02.12.2010 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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105251 02.12.2010
Datum: 02.12.2010 - 15:30 Uhr
Sprache: Deutsch
News-ID 32785
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