Mantle Resources Increases Flow-Through Private Placement and Announces Further Private Placement
November 27, 2007
– Tuesday, November 27, 2007 – Mantle Resources Inc. (TSX Venture Exchange: MTS;
: A0F7E1) (“Mantle” or the “Company”) is pleased to announce that, due to significant demand, the private placement announced on November 12, 2007, has been increased in size to up to 1,875,000 flow through shares at a price of $1.60 per share for gross proceeds of up to $3,000,000. A finder’s fee of 5% will be paid on a portion of the private placement. Further, the Company is pleased to announce an additional private placement with Lundin Mining Corp. (TSX : LUN) of up to 295,000 shares at a price of $1.30 per share for gross proceeds of up to $383,500. Added to its current position, this would result in Lundin Mining maintaining a just under 10-per-cent equity position in Mantle Resources.
The private placements above are subject to TSX Venture Exchange approval.
The proceeds are planned to be used for further exploration of the Akie SEDEX zinc-lead property and to explore the balance of the Company’s portfolio of mineral holdings (102,220 hectares), located within the highly prospective Kechika Trough SEDEX zinc-lead basin of northeastern
Upon closing of the above noted private placements, the Company anticipates having in excess of $10 million in its treasury.
About the Akie Property
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits. Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Mantle in 2005 and 2006 and this year has identified a significant body of baritic SEDEX mineralization (Cardiac Creek Zone). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel Formation.
Two similar deposits, Cirque and South Cirque, located some 20 kilometers northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes averaging approximately 10% combined zinc+lead.
On behalf of the Board of Directors
MANTLE RESOURCES INC.
“Peeyush K. Varshney”
Peeyush K. Varshney
CEO & Chairman