News ReleasesSeptember 17, 2009
Lysander Announces Completion Of Private Placement
Vancouver, Canada - Lysander Minerals Corporation (TSXV: LYM) (the "Company") announced today that it has completed, subject to regulatory acceptance, the previously announced "best efforts" private placement offering (the "Offering") of 16,075,000 units (the "Units") of the Company at a price of C$0.20 per Unit for gross proceeds of C$3,215,000. Each Unit consisted of one common share (a "Common Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share of the Company at an exercise price of C$0.30 until September 17, 2011. GMP Securities L.P. acted as the agent for the Offering and for its services in connection therewith, received a cash commission and compensation options exercisable to acquire 955,500 Units at an exercise price of C$0.20 per Unit until September 17, 2011.
All securities issued as part of the Offering, including the Common Shares issued upon exercise of the Warrants, are subject to a four-month hold period expiring on January 18, 2010.
It is intended that the net proceeds received by the Company under the offering shall be used for costs related to the care and maintenance of the Verticalnaya anthracite mine currently under option by the Company while the Company pursues the necessary approvals in connection with completing the acquisition and assesses development plans for the mine and for general working capital. In the event that the Company is unable to obtain the requisite approvals (including shareholder and regulatory approval) in connection with the acquisition of the Verticalnaya anthracite mine, the net proceeds of the Offering will be used by the Company for other resource investments and for general working capital.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
Since the spin-out of its Lorraine-Jajay copper-gold project to Lorraine Copper Corp. (TSX-V: LLC) in April 2008, Lysander's declared strategy is to seek advanced resource projects with potential for exceptional returns, without geographical limitations. It has focused on energy, commencing with options to acquire the Verticalnaya anthracite coal project in the Donbass Coal Basin of the Ukraine.
In September 2008, a NI 43-101 technical report on the Verticalnaya mine was prepared on behalf of Lysander and is available on SEDAR (www.sedar.com) and the Company's website. A technical report on a possible satellite operation north of Verticalnaya mine is currently in preparation.
The Verticalnaya coal mine is situated in the Lugansk region of the Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It is on care and maintenance after a period of low production following the break-down of the Soviet Union.
Please visit our website at www.lysanderminerals.com for further information.
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. This news release may contain forward - looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward - looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission.
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