Sunday, October 03, 2010

Uranium and Rare Earth Elements Stocks; Pele Mountain (TSX VENTURE:GEM) Announces Closing of Private Placement Offering

Uranium and Rare Earth Elements  Stocks; Pele Mountain (TSX VENTURE:GEM)Announces Closing of Private Placement Offering


TORONTO, ONTARIO--(http://www.investorideas.com/ gold and mining stocks blog) - Oct. 1, 2010) - Pele Mountain Resources Inc. (TSX VENTURE:GEM) ("Pele" or the "Company") is pleased to announce that it has closed the second tranche of a non-brokered private placement offering (the "Offering") comprised of 3,026,664 flow-through units (the "Units") at a purchase price of $0.18 per Unit for gross proceeds of $544,800. Each Unit consists of one common share and one-half of one common share purchase warrant (a "Warrant"), with each Warrant exercisable for one common share of Pele at $0.25 until April 1, 2012. Pele announced the closing of the first tranche on September 30, 2010.
In connection with the Offering, the Company paid eligible persons (the "Finders") a cash fee of 7% of the gross proceeds raised through each Finder and also issued compensation warrants equal to 7% of the total number of Units (the "Compensation Warrants") issued through each Finder under the Offering. Each Compensation Warrant is exercisable for one common share of Pele at $0.25 until April 1, 2012. On closing, the Company paid an aggregate amount of $15,820 in cash fees to the Finders and issued an aggregate of 87,889 Compensation Warrants.



The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.
All proceeds raised from the sale of Units will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties.
About Pele
Pele Mountain Resources is focused on the sustainable development of its Eco Ridge Mine Uranium and Rare Earth Elements ("REE") project, located in the Elliot Lake mining camp of Northern Ontario. Pele's expert team of technical personnel, advisors, and consultants is working to optimize mining, processing, and waste management techniques at Eco Ridge. With well-understood geology, excellent regional infrastructure, and strong local support, Eco Ridge provides an ideal location for a safe, secure, and reliable long-term supply of Uranium and REE. Additionally, Pele has, or is actively seeking, qualified strategic partners to advance its other high-potential exploration projects, including high-grade gold properties at Highland and Ardeen. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM".


Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Pele's future plans, objectives or goals, including words to the effect that Pele or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.
Common Shares Outstanding: 116,672,572


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact
Pele Mountain Resources Inc.
Al Shefsky
President
(800) 315-7353
www.pelemountain.com


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