Mawson Closes Private Placement
Vancouver, Canada - Mawson Resources Limited ("Mawson") TSX - MAW; Frankfurt - MRY, is pleased to announce the completion of a private placement financing consisting of 7 million units at a price of $0.79 per unit for total gross proceeds of $5,530,000. Each unit consists of one common share and one half common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles holders to purchase one additional common share at a price of $1.20 per share up to and including October 25, 2012. The lead order for 5 million units in the financing is a fund managed by The Sentient Group, an independent private equity firm that manages over US$1.4 billion of investments in the global resources industry.
The securities issued in connection with the private placement are subject to a four month hold period expiring on February 26, 2011. The net proceeds from the financing will be used to fund exploration programs of Mawson's projects in Finland, Sweden and Peru and for general working capital. Mawson has paid a cash finder's fee of $4,740.
In addition, Mawson announces that at its Annual General Meeting of Shareholders (the "AGM") held on Friday, October 22, 2010, shareholders re-elected Messrs. Michael Hudson, Mark Saxon, David Henstridge, Nick DeMare and Gil Leathley as directors of Mawson. All other resolutions were passed.
At a directors' meeting held subsequent to the AGM, the directors re-appointed Michael Hudson as Chairman, President and Chief Executive Officer, Mr. Nick DeMare as Chief Financial Officer and Ms. Mariana Bermudez as Corporate Secretary.
About Mawson Resources Ltd (TSX:MAW, FRANKFURT:MRY, PINKSHEETS:MWSNF)
Mawson Resources Ltd is a resource acquisition and development company with metal and energy interests in Finland, Peru and Sweden. The Company is exploring at Rompas in Finland, a new discovery with bonanza gold where samples up to 12,800 g/t (373 oz/ton) gold and 43.6% uranium have been identified. In addition, the Company is exploring for gold and copper in the highly prospective Cordillera of Peru, with a focus on a new high grade gold discovery at Alto Quemado.
Mawson has distinguished itself as the leading Scandinavian uranium exploration company, with advanced projects in Sweden and Finland. As the European Union moves to reduce its reliance on carbon-based energy sources and continues to debate energy security, Mawson is well positioned to provide Europe with the option to fuel its future. Areva NC holds 11% of the Company and provides Mawson with an active technical partner.
With a strong cash position and shareholder base, and a multi-jurisdiction European and South American portfolio, Mawson is ideally positioned to enhance its status as a leader in the uranium and gold industries.
Shares Outstanding: 49,697,253. Cash: approximately C$14 million.
On behalf of the Board,
Michael Hudson, President & CEO
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
Company Contact: Mariana Bermudez +1 (604) 685 9316
Investor Relation Consultants - Mining Interactive
Nick Nicolaas +1 (604) 657 4058
Forward Looking Statement. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement. The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.