DSM Closes Financing: C$4.7 million raised ; Phase II Drilling Program Begins
TORONTO, ONTARIO--
DESERT SUN MINING CORP. (TSX-V: DSM) is pleased to announce today
that is has closed the second tranche of its private placement
financing. DSM has raised a total of C$4.7 million. The proceeds
will be used to expand the exploration program at the Bahia Gold
Belt in Brazil, complete the previously announced pre-feasibility
study led by SNC Lavalin and for working capital.
The private placement financing consisted of non-brokered private
placement units issued to accredited investors at C$1.00 per
unit. Each unit consisted of one (1) common share at C$1.00 in
the capital of the Corporation and one-half (0.5) common share
purchase warrant ("Purchase Warrants"). Each Purchase Warrant
shall entitle the holder to purchase one additional common share
of the Corporation at a price of C$1.25 per share at any time
within eighteen months after the closing date. All shares and
warrants are subject to a 4 month hold period.
DSM recently completed Phase I of the drilling program consisting
of 12 diamond drill holes totaling 2550 meters. The Phase I
drilling was intended to determine the potential for open pit
targets in and around the plant area and the two existing mines.
The results announced January 20th, indicate that there is a
potential zone of low-grade large tonnage open pit material.
Additional results will be forthcoming as further drill results
are received. This information will be used in Phase II to
complete additional drilling and identify additional resources
for the pre-feasibility study. The Phase II drilling will also
explore the extent and scope of the 100 km plus Bahia Gold Belt
and identify additional targets.
DSM has an option to earn a 51% interest in the Jacobina mine and
related mineral concessions by spending up to US$2,000,000 in
exploration on the property prior to December 31, 2004. DSM has a
further option to acquire the remaining 49% of the property for
C$5 million in cash or stock, 90 days after earning its initial
51% interest.
The Corporation has assembled a quality team of mining
professionals with strong international experience in geology,
mining and finance. The Company's focus is centered on the Bahia
Gold Belt, which contains the Jacobina Mine, in the State of
Bahia, Brazil. As one of the largest gold resources in the
country, the Jacobina Mine is well-positioned as both an
exploration and a development project. The Jacobina Mine's
mineral resources, estimated by JMC and reviewed by Micon
International in 1998, reported by category were:
/T/
Category Tonnes Grade (g Au/t) Contained
Measured (M) 2,753,000 2.68 237,400
Indicated (I) 12,271,000 2.91 1,146,500
Total M & I 15,024,000 2.87 1,383,900
Total Inferred 22,947,000 3.10 2,285,886
/T/
More than US$100 million has been invested in the mine to date.
The reported resources are located on about 5% of the 100 km long
property in the geologically world-famous quartz pebble
conglomerate beds of the Serra do Córrego Formation.
Desert Sun Mining issued on February 4, 2003, 1,439,997 options
to purchase common shares of the Corporation to employees and
consultants, out of which 1,039,997 options were granted to
officers and directors, at an exercise price of C$1.00 per share,
expiring on February 4, 2008.
Desert Sun Mining is a Canadian gold exploration and development
company listed on the Toronto Venture Exchange.
(www.desertsunmining.com).
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FOR FURTHER INFORMATION PLEASE CONTACT:
Desert Sun Mining Corp.
Mark Brennan
416-364-2266
1-877-600-6001
or
Kam Gill
416-861-0341
416-861-8165 (FAX)
866-477-0077
www.desertsunmining.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. |
