COEUR D'ALENE, Idaho, Nov. 5, 2013 (GLOBE NEWSWIRE) -- New Jersey Mining Company ("NJMC" or the "Company") today announced the completion and closing of a private placement of its equity securities through a registered broker.
The Company sold $1.03-million of equity securities priced at $0.05 per unit. Each unit was comprised of one share of common stock and one-half common share purchase warrant. Each full warrant gives the holder the right, but not the obligation, to purchase one share of common stock at $0.15 for 18 months. All common shares issued in connection with the placement are restricted securities.
The Company intends to use the net proceeds from the placement for debt service, mill upgrades, working capital, and general corporate purposes. The new management team at NJMC is implementing a new business plan, prioritizing cash flow from its mill and pursuit of small-scale production opportunities.
Pennaluna & Company, a registered broker, was the sole placement agent for the offering and received a commission of 10-percent of the gross sale proceeds.
The Company's President and Chief Executive Officer purchased equity securities for their own accounts.
About New Jersey Mining Company
New Jersey Mining Company, Inc.'s (NJMC) new management team is in the process of implementing a new strategic plan for the company, building upon its current asset base and focused on generating cash flow from its mill and small-scale production opportunities.
NJMC is located in the Silver Valley mining region of North Idaho. The Company owns and operates a fully-permitted 360 tonne per day flotation mill and concentrate leach plant. The mill underwent a $3.2-million expansion in 2011 that was entirely funded by United Silver Corp. NJMC granted United Silver Corp. a guaranteed milling capacity of 7,000 tonnes per month in exchange for their funding the expansion of NJMC's mill. NJMC, as manager, has the option to use excess capacity.
The Company also owns a 47.88-percent interest in the Golden Chest LLC, which controls the Golden Chest Mine. The Golden Chest LLC is owned by Marathon Gold and New Jersey Mining Company, and the Golden Chest Mine is a historical gold producer with more than 12,000 feet of underground workings. Since 2003, more than $6-million has been spent on exploration, drilling, and development at the Golden Chest Mine, including more than $5-million by Marathon Gold since 2010, as part of their earn-in to the Golden Chest LLC. The Golden Chest LLC recently optioned a portion of the Golden Chest Mine to Juniper Resources, a mine development and production company that will fund a drill program to evaluate the production potential of the Skookum Shoot portion of the mine.
The Company trades on the OTC Markets under the symbol "NJMC".
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.