TORONTO, ONTARIO--(Marketwire - Oct. 5, 2012) -
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Alexander Nubia International Inc. (the "Company") (TSX VENTURE:AAN) today announced a non-brokered private placement (the "Private Placement") of a minimum of 4,000,000 common shares of the Company (the "Common Shares") and a maximum of 9,000,000 Common Shares at $0.05 per Common Share for gross proceeds of between $200,000 and $450,000 to fund an exploration and drilling program on the Company's Hamama property and for working capital a purposes.
The Company is pleased to report that it has closed the first tranche (the "First Tranche") of the Private Placement for gross proceeds of approximately $200,000. In connection with the First Tranche, the Company issued an aggregate of 3,970,450 Common Shares at $0.05 per Common Share.
The Private Placement is non-brokered; however, the Company may pay finder's fees in accordance with the rules and policies of the TSX Venture Exchange. No finder's fees were paid in connection with the First Tranche. All Common Shares issued in connection with the First Tranche are subject to a four month hold period that expires on February 6, 2013, in accordance with applicable securities legislation.
The Company expects to complete one or more further tranches of the Private Placement on the same terms. The completion of subsequent tranches of the Private Placement is subject to certain customary conditions, including, but not limited to, the execution of definitive subscription agreements with subscribers and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. It is currently anticipated that certain insiders of the Company will be participating in subsequent tranches of the Private Placement.
About Alexander Nubia International Inc.
Alexander Nubia International Inc. (TSX VENTURE: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.
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.