Press ReleasesOctober 10, 2006
Duluth Metals Limited Begins Trading Following Completion of Initial Public Offering
TORONTO, ONTARIO, October 10, 2006 -- Duluth Metals Limited (TSX: DM) is pleased to announce today that its common shares will begin trading today on the Toronto Stock Exchange under the symbol "DM" after the successful completion of its Initial Public Offering ("IPO") and concurrent Private Placement, which together raised gross proceeds of $11,493,482.
Proceeds from the IPO and Concurrent Private Placement will be used primarily to fund a two-phase exploration program on Duluth's Maturi Extension Property, covering 2,648 acres (more than 10 square km) of mineral properties, which hosts an extensive zone of copper-nickel-PGM (platinum group metals) mineralization within the Duluth Complex in northeastern Minnesota.
Christopher Dundas, Chairman and CFO, stated, "We are extremely pleased to have concluded such a substantial financial raise in challenging market conditions and we believe this confirms the exciting opportunity we have in participating in the Duluth Camp."
Drilling to date on the property has intersected this mineralization in widely spaced drill holes over a strike length of approximately 4 km (2.4 miles). Approximately 35 holes totalling 30,000 metres (100,000 feet) of diamond drilling is planned using up to four drills. Drilling is scheduled to start this month.
The Maturi Extension Property has been divided into a Western Area and an Eastern Exploration Area. The objectives of the programs are to concentrate drilling in the Western Area in order to pursue a qualified resource and to define the limits of the mineralization in the Eastern Exploration Area, which hosts some of the better grade intersections in the Complex and is open to the east, north and south.
Henry Sandri, President and CEO stated, "Duluth Metals is looking forward to its participation as a major player in the emerging Duluth Complex. In our view, the Duluth Complex is the next major nickel-copper-PGM sulphide camp to be developed."
The IPO consisted of 12,949,250 units (the "Units"), each Unit consisting of one common share and one-half of one Class A share purchase warrant (the "Class A Warrants"), with each whole warrant (a "Warrant") exercisable into one common share. The Units have been issued pursuant to a prospectus dated September 13, 2006, (the "Prospectus") at a price of $0.80 each for total proceeds of $10,359,400. The Class A Warrants are exercisable at a price of $1.10 per Warrant at any time on or before September 30, 2008. D&D Securities Company and Union Securities Ltd. acted as co-agents on the IPO.
Concurrent with completion of its IPO, a U.S. Private Placement (the "Concurrent Private Placement") was completed consisting of 1,417,603 additional Units at a price of $0.80 Cdn each for total proceeds of $1,134,082.40 Cdn. The Common Shares and Class A Warrants issued pursuant to the Concurrent Private Placement are subject to a four month plus one day hold period. Northland Securities, Inc. acted as agent on the Concurrent Private Placement.
About Duluth Metals
Duluth Metals Limited was founded to acquire, explore and develop copper, nickel and platinum group metal (PGM) deposits in North America. Duluth's principal property is the Maturi Extension Property located within the rapidly emerging Duluth Complex mining camp in northeastern Minnesota. The Duluth Complex hosts one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals.
Mara Strazdins at 416 710 0646.
Henry Sandri, President and CEO, Duluth Metals Limited at firstname.lastname@example.org.
This document may contain forward-looking statements relating to Duluth's operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Duluth's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Duluth disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.