Ashton Mining Raises $5.25 Million in Placement

Diamond miner Ashton Mining of Canada Inc says it has agreed to issue five million units to a European institutional investor at a price of $1.05 per unit for gross proceeds of $5,250,000. The offering is expected to close on or about November 15.

The proceeds of the offering will be used for Ashton's 2005 exploration programs and for working capital and general company purposes.

Each unit will consist of one common share and one half-warrant. Each warrant will entitle the holder to acquire one Ashton common share for $1.30 not later than 30 months after the offering has closed.

The common shares will be issued on a non-brokered private placement basis and will not be qualified by a prospectus. As a result, they will be subject to the applicable statutory hold periods.

The offering is subject to a number of conditions including the execution of formal documentation and receipt of the applicable regulatory approvals.