2012-10-17 12:11:07 -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, Ontario CANADA, October 17, 2012 /FSC/ - Alexander Nubia International Inc. (AAN - TSX Venture), (the "Company")is pleased to report that its previously announced non-brokered private placement (the "Private Placement") was fully subscribed, for aggregate gross proceeds of approximately $450,000, with the closing of the third and final tranche (the "Third Tranche"). Further details regarding the first two tranches of the Private Placement are set out in the Company's press releases dated October 5, 2012 and October 11, 2012. No finder's fees were paid in connection with the Private Placement. The proceeds from the Private Placement will be used to fund an exploration and drilling
program on the Company's Hamama VMS deposit and for working capital purposes.
In connection with the Third Tranche, the Company issued an aggregate of 790,000 common shares of the Company (each, a "Common Share") at $0.05 per Common Share, for gross proceeds of approximately $40,000. All Common Shares issued in connection with the Third Tranche are subject to a four month hold period that expires on February 17, 2013, in accordance with applicable securities legislation.
Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Private Placement constitutes a "related party transaction" as insiders of the Company subscribed for an aggregate of 2,240,000 Common Shares, or 25% of the total number of Common Shares issued pursuant to the Private Placement. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, based on a determination that the securities of the Company are only listed on the TSX Venture Exchange and that the fair market value of the Private Placement, insofar as it involves interested parties, does not exceed $2,500,000 and/or 25% of the market capitalization of the Company at the time the Private Placement was initially announced. The Private Placement was approved by all of the independent directors of the Company.
About Alexander Nubia International Inc.
Alexander Nubia International Inc. (TSX.V: AAN) is a Canadian mineral exploration and development Company focused on advancing exploration projects in the Eastern Desert in Egypt. The Company holds two exploration concessions: Abu Marawat and Fatiri, which cover areas of 1,027 km2 and 1,745 km2, respectively. The Abu Marawat Concession contains two principal deposits: the Hamama volcanogenic massive sulphide ("VMS") deposit and the Abu Marawat gold-copper mesothermal vein deposit. Priority and resources have been allocated to the Hamama deposit based on recent discovery of a broad zone of VMS gossan at-surface containing high grade gold, an extensive and mineralized footwall stringer zone and excellent first-stage diamond drilling results. The Abu Marawat Technical Report estimates an inferred mineral resource of 397,000 ounces of gold and gold-equivalent. With approximately $6 million in direct expenditures on the Abu Marawat deposit, this equates to a discovery cost of $15 per gold-equivalent ounce. With only 50% of the available strike length drilled to an average depth of 200 metres, management of the Company believes that this allows substantial upside for increasing the resource through a modest drill program. Further enhancing corporate value is a prospective land package containing several quality targets and deposits representing past producing gold mines and historical workings, all within a 35-kilometre radius and near to seaport, railway, electricity grid, international airport and paved highways.
Gold-Equivalent Calculation - Management has used the following to determine the inferred mineral resource of 397,000 ounces of gold plus gold equivalent: As disclosed in the Abu Marawat Technical Report, the Abu Marawat deposit inferred mineral resource is: 2.9 million tonnes at an average grade of 1.75 g/t Au, 29.3 g/t Ag, 0.77 % Cu and 1.15 % Zn, containing 162 thousand ounces Au, 2.7 million ounces Ag, 49 million pounds Cu, and 73 million pounds Zn. The gold equivalencies of silver, copper, and zinc are based on the metal prices used in the NSR model as follows: Au US$1400/ounce, Ag US$26/ounce, Cu US$3.50/pound and Zn $1.15/pound.
For more information on the Company please visit our web site at www.alexandernubia.com or contact:
A. Alexander Massoud
President and Chief Executive Officer
Egypt: +2 (0) 22 287 6914
Canada: +1 (877) 607-4747
Donald M. Cameron, CA
Chief Financial Officer
Canada: +1 (877) 607-4747
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
To view this press release as a web page, click onto the link below:
Source: Alexander Nubia International Inc. (TSX.V - AAN) www.alexandernubia.com
Maximum News Dissemination by FSCwire. www.fscwire.com