COEUR D'ALENE, Idaho, March 7, 2014 (GLOBE NEWSWIRE) -- New Jersey Mining Company ("NJMC" or the "Company") (OTCBB:NJMC) today announced the completion and closing of a private placement of its equity securities.
The Company sold $450,000 of equity securities priced at $0.15 per unit. Each unit was comprised of two shares of common stock and one common stock purchase warrant. Each purchase warrant gives the holder the right, but not the obligation, to purchase one share of common stock at $0.15 for a 3-year period. All securities issued in connection with the placement are restricted securities.
The Company will use the net proceeds from the placement to purchase and install a gravity circuit and make other improvements at the New Jersey Mill and for 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.
GVC Capital LLC was the sole placement agent for the offering. GVC Capital LLC is headquartered in the Denver area and is focused on providing comprehensive investment banking services to microcap companies.
About New Jersey Mining Company
The new management team at New Jersey Mining Company (NJMC) is implementing a new business plan. NJMC is located in North Idaho's Silver Valley where it built and is the majority-owner and operator of a fully-permitted 360-tonne per day flotation mill and concentrate leach plant. The Company is actively engaging clients for custom milling contracts while also pursuing its own small-scale production opportunities.
The Company also owns a 47.88-percent interest in the Golden Chest LLC which controls the Golden Chest Mine, 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. Golden Chest LLC recently leased a portion of the Golden Chest Mine to Juniper Resources, a mine development and production company.
The Company's common stock trades on the OTC Market 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.