Norsemont closes $1.19M third tranche of placement

Executive Summary

• Norsemont Mining Inc. has closed the third tranche of a non-brokered private placement led by Crescat Capital and Equity Management Associates.
• The company raised $1,191,500.40 in this tranche, bringing the aggregate gross proceeds from all three tranches to $5,479,199.40.
• Proceeds are designated for phase 3 drill programs (including deep DDH holes and metallurgy studies) and general working capital to advance the Choquelimpie gold-silver-copper project in northern Chile.

Key Details

• Transaction Structure: Non-brokered private placement, third tranche.
• Units Issued: 1,985,834 units.
• Price Per Unit: $0.60 CAD.
• Gross Proceeds (Tranche 3): $1,191,500.40.
• Aggregate Gross Proceeds (All Tranches): $5,479,199.40.
• Warrant Terms: Each unit includes one-half of one warrant. Each warrant entitles the holder to acquire one common share at an exercise price of $0.75 per share.
• Warrant Expiry: Two years from the date of closing.
• Acceleration Clause: If common shares close at $1.25 or greater for 10 consecutive trading days (starting 4 months and 1 day after closing), the company may accelerate warrant expiry by giving notice, with warrants expiring 10 business days after such notice.
• Use of Proceeds: Phase 3 drill programs (DDH deep 600-metre holes into copper porphyry zone, 300-metre drill holes into high-grade gold zones, shallow holes into oxide/leachable gold zone), metallurgy, and general working capital.
• Hold Periods: 4 months and 1 day for Canadian investors; additional hold periods for U.S. investors per federal and blue-sky laws.
• Key Investors: Crescat Capital (Lead), Equity Management Associates (Larry Lepard, Rob McEwen).

Notable Quotes

• Marc Levy, CEO: "Closing over $5.4-million and the strategic support of Crescat Capital, Larry Lepard and Rob McEwen strongly endorses our vision and the upside of the Choquelimpie project. Their backing positions Norsemont to advance drilling, metallurgy and engineering, and to unlock significant value for all stakeholders."
• Dr. Quinton Hennigh, Geologic and Technical Adviser to Crescat Capital: "Norsemont's Choquelimpie project is a massive mineralizing system in the far north of Chile... I feel very strongly that a well-focused, sustained drill campaign can quickly add significant additions to the already large Au and Ag resources. One also must ask the obvious question of whether there is potential for a large porphyry discovery beneath."
• Lawrence Lepard, Managing Partner at Equity Management Associates LLC: "Norsemont's Choquelimpie gold-silver-copper project has the scale, potential and infrastructure to create significant value. Chile has proven to be an excellent mining jurisdiction... I'm excited to back the team as a strategic shareholder and support them in unlocking this world-class opportunity for all shareholders."