Message #3 From:
Stock News Bot Date: February 13, 2007 06:00:00 AM
GNLM News General Metals Corp Concludes Restricted Private Placement for $200,000 From Existing Shareholders and Readies For Phase 1 Institutional Finance Round
RENO, Nev.--(BUSINESS WIRE)--General Metals Corporation (OTCBB:GNLM) is pleased to announce the successful conclusion of a private placement to accredited individual investors for proceeds of $200,000 for the issuance of 2,666,666 units consisting of 2,666,666 restricted common shares and 2,666,666 share purchase warrants exercisable at $0.075 for a period of 2 years. A portion of the above units were issued in lieu of compensation for work already done on behalf of the Company. The proceeds will be used for general working capital purposes and to prepare for the 2007 drilling and permitting activities of the Company. A portion of the proceeds has been used to retain an international mining finance specialist to assist in the Company’s Phase 1 institutional round which is targeted for completion prior to the Company’s year end of April 30th and prior to the spring exploration period in northern Nevada.
The securities issued in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act of 1933. The Company has agreed to registration rights for the shares of common stock underlying the warrants, although the securities to be issued are restricted and may not be sold or offered in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares or the warrants.
The Company intends to proceed with drilling and permitting at its Independence Mine in Nevada as well as to pursue its global acquisition and development strategy. The Independence Mine is located as an island inside Newmont mining’s claims that contain their Phoenix Mine. The Independence Mine is predominantly a silver mine that produced intermittently from 1938 – 1987 and reported production of 11,000 ounces of gold and 750,000 ounces of silver.
At current prices of over $650 per ounce gold and $13.50 per ounce silver and with an estimated 235,000 ounces of gold and 2,500,000 ounces of silver contained in the mineralized material in the “Shallow Target”, according to the 1997 Akright report, development is now underway. In addition to the shallow target, the “Independence Deep Target”, was thought to contain 2,000,000 ounces of gold according to an interoffice memo from Noranda when they completed 25,000 feet of diamond drilling. We have all of the core at the mine which has been re-logged and re-assayed A full discussion can be reviewed on the Company’s website www.generalmetalscorporation.com under “Executive Summary and Exploration Plan”.
Notice Regarding Forward Looking Statements
This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the Company intends to proceed with drilling and permitting at its Independence Mine in Nevada as well as to pursue its global acquisition and development strategy, that an estimated additional 235,000 ounces of gold and 2,500,000 ounces of silver are contained in the mineralized material in the “Shallow Target”, that, in addition to the shallow target, the “Independence Deep Target” may contain 2,000,000 ounces of gold, the retention of an international mining finance specialist and the completion of any subsequent financing.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
