Douglas Lake Gets $12.2M from PIPE

Douglas Lake Minerals Inc. (OTC:DLKM) today, in a press release, announced that it has entered into definitive agreements with institutional and accredited investors to purchase approximately $12.2 million of securities in a private placement transaction. Under the terms of the transaction, Douglas Lake has agreed to sell an aggregate of 27,173,372 common shares at $0.45 per share and common share purchase warrants to purchase up to 27,173,372 additional common shares. As I write, shares of Douglas Lake were down 7 percent at $0.54 per share on light volume of just over 30,000 shares. The company has a market cap of $140 million and a 52-week range between $0.09 and $0.80 per share.

The warrants to purchase additional shares will be exercisable at $0.52 per share. Warrants issued to certain investors to purchase up to 14,862,262 common shares shall have an exercise period of 18 months and warrants issued to certain accredited investors to purchase up to 12,311,110 common shares shall have an exercise period of 30 months. The closing of the private placement is subject to the satisfaction of customary closing conditions.

Net proceeds from the private placement will be used primarily to support the Company's current exploration and development plans in Tanzania together with the Company's ongoing general corporate and working capital requirements consequent thereon.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ:RODM) acted as the exclusive placement agent for the transaction.

Commenting on the Placement, Harp Sangha, the Company's CEO stated, "We are very pleased to have Rodman & Renshaw, our new financial partners, along with us during these exciting growth times for Douglas Lake and its shareholders. We will now be positioned to further our exploration and development program on our advanced stage recently acquired Handeni project. The ability to step away from our current royalty model and to be able to solely develop our wholly owned property has the potential to add significant value to our company. In addition, the monies raised will allow us to continue to build a strong and diversified portfolio of advanced, development and exploration-stage properties in Tanzania while at the same time allowing us to consider a myriad of other projects of like potential."

The Company is an emerging mineral exploration company focused on exploring and developing mining opportunities in Tanzania.

For more information, go to www.douglaslakeminerals.com.

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