Yellowhead announces partial closing of private placement

The gross proceeds received by Yellowhead Mining for the sale of the FT shares will be used for the exploratory drilling program

Yellowhead Mining Inc. announced on Dec. 21 that it has completed an additional portion of its previously announced non-brokered private placement of common shares of the company.

An aggregate of 340,000 common shares were issued to various individual qualified investors at an issue price of $0.65 per share. In addition, 315,714 flow-through common shares (FT shares) were issued to an individual qualified investor at an issue price of $0.70 per FT share.

Gross proceeds from the closing of this portion of the private placement totalled $442,000. The company paid finder’s fees equal to five per cent of the gross proceeds.

The gross proceeds received by Yellowhead Mining for the sale of the FT shares will be used for the exploratory drilling program reported in the Times in its Dec. 13 issue.

After this closing, there are 61,624,481 issued and outstanding common shares of the company.

Greg Hawkins, chairman of the board and interim chief executive officer, said: “We appreciate all our investors, large and small, and continue to work diligently to complete further portions of this private placement, along with our current winter drilling program and critical path items.”

Taseko Mines Limited announced in November that it had acquired 7,692,307 common shares of Yellowhead Mining. at a price of $0.65 per share pursuant to a private placement for subscription proceeds of $5 million.

As a result of its participation in this private placement, Taseko now holds a total of 10,269,507 shares of Yellowhead, representing approximately 16.8 per cent of the Yellowhead Mining’s currently issued and outstanding shares.

Yellowhead Mining is a publicly traded company with a 100 per cent interest in the Harper Creek copper-goldsilver development project, which is located approximately 10 km southwest of Vavenby.

Taseko is the owner (75 per cent) and operator of the Gibraltar Mine, the second largest open pit coppermolybdenum mine in Canada.

Taseko’s New Prosperity Project, which is currently in the EnvironmentalAssessment process, is one of the largest undeveloped gold copper deposits in the world.