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St. Elias Mines completes $4.5m private placement financing

Gold explorer St. Elias Mines (CVE:SLI) reported Monday that it has closed its previously announced non-brokered private placement financing, with proceeds to be used to fund exploration costs on the company’s properties in Peru.

St. Elias sold 2.5 million units for $1.80 per share, raising gross proceeds of $4.5 million.

Each unit consists of one common share and one share purchase warrant of St. Elias Mines, with each whole warrant giving the holder the right to purchase an extra share for a cost of $2.10 for 12 months, expiring on October 7, 2012.

A finder’s fee of $14,508 in cash, along with 2,340 shares were paid.

The new funds will be used for exploration expenditures on the company’s properties and for general working capital, it said. The placement remains subject to regulatory approval.

St. Elias is engaged in the exploration and development of natural resource properties. Its gold properties in Peru include Tesoro, Vilcoro and Cueva Blanca.

In late August, the company reported it began a 10,000 metre drill campaign at the Tesoro site, designed to test the near-surface and deep-seated geophysical anomalies identified by earlier surveys.

The company has a 52-week high of $2.73, while its 52-week low is $1.43.