News
DELTA MINING AND
EXPLORATION RECEIVES DEFINITIVE COMMITMENT FOR $500,000 FINANCING
Lewisburg, KY.,
July 22, 2004 – Delta Mining and Exploration Corp., (Pink Sheets: DMXC)
is pleased to announce the completion of a financing agreement with
Platinum Equity Funding Inc, a Toronto based investment house with
affiliated offices in New York and London.
Delta will receive
between five hundred thousand (US$500,000) to one million four hundred
thousand (US$1,400,000) dollars in a series of two payments. The
first tranche will be for no less then five hundred thousand
(US$500,000) dollars and up to seven hundred thousand (US$700,000)
dollars. The closing date is scheduled for August 15th,
2004; with the second tranche being for a similar amount as the first.
The aggregate amount could equal up to one million four hundred
thousand (US$1,400,000) dollars if Platinum chooses to exercise their
over allotment option and the second tranche is fully subscribed.
The financing is in
the form of an 8% per annum interest bearing convertible debenture;
convertible for a two year period at $0.03 USD per common share. Upon
conversion Platinum will receive a half warrant at $.0375 USD for
every ordinary share they receive. The warrant will allow Delta to
secure additional funds if Platinum chooses to exercise
Platinum has the
right to convert at any time, whereas Delta can force conversion after
six months providing the share price is over $.03 USD per share. The
debenture has a solid floor price of $0.03 USD that protects Delta
from a conversion being forced at a lower price. The underlying
securities carry no registration rights, but would be registered if a
registration was to be completed within twelve months, otherwise the
shares would be subject to having the restriction removed as per Rule
144.
The funds secured
via this agreement will be utilized predominantly on the continued
exploration of the Homestead Kimberlite, additional targets in the
area and general corporate purposes. The debenture signed with
Platinum prevents Delta from using any funds for repayment of existing
notes.
Delta has already
found diamond indicator minerals, a kimberlite and a micro-diamond on
the Homestead property. The secured funds will allow the viability of
the kimberlite body on the Homestead property to be determined.
The senior
investment analyst at Platinum Equity has expressed his enthusiasm
over the prospects of the company and their portfolio of high quality
properties. Platinum has indicated their primary interest is the
Homestead Kimberlite and the surrounding area but acknowledges the
balance of Delta’s properties display similar potential.
This agreement is
distinct from that discussed by the company in its May 5, 2004 news
release. Though not completed, both parties are working hard to
ensure that it comes to fruition in the near future.
Delta Mining and
Exploration Corp,
http://www.deltamine.com is a mineral exploration company with an
extensive portfolio of diamond properties in Montana, USA and in
Bolivia, South America. Delta controls some 7,500 acres throughout
Montana located within the Wyoming Craton where much of North
America's diamonds have been found. Another 10,000 acres of
prospective diamond properties are controlled in Bolivia, South
America.
NOTE: Safe Harbor for Forward-Looking
Statements.
This press release contains
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995 (the "Act"). In particular,
when used in the preceding discussion, the words "plan," "confident
that," "believe," "scheduled," "expect," or "intend to," and similar
conditional expressions are intended to identify forward-looking
statements within the meaning of the Act and are subject to the safe
harbor created by the Act. Such statements are subject to certain
risks and uncertainties and actual results could differ materially
from those expressed in any of the forward-looking statements. Such
risks and uncertainties include, but are not limited to, the ability
of the Company to complete the planned bridge financing, market
conditions, the general acceptance of the Company's products and
technologies, competitive factors, timing, and other risks described
in the Company's SEC reports and filings.
ON BEHALF OF THE
BOARD of Delta Mining and Exploration Corp.
Contact:
Alex Livak: 917-731-0215
Email:
info@deltamine.com
Website:
http://www.deltamine.com
SOURCE: Delta Mining and Exploration Corp. |
