Ashton Plans to Raise $2.3 Million in Share Offering

Ashton Mining announced yesterday it intends to raise up to $2.3 million by offering up to 2 million shares at $1.15 each.

The offering of the flow-through common shares will be conducted on a best efforts basis and is expected to close not later than December 6. Dundee Securities Corporation will act as agent for the offering and is entitled to place an additional 500,000 flow-through common shares at any time before the transaction closes.

Ashton says it will utilize the proceeds of the offering to support the Corporation's diamond exploration projects in Quebec and elsewhere in Canada.

Ashton has agreed to pay the agent a cash fee equal to five percent of the gross proceeds of the offering. In addition, the agent will receive broker warrants exercisable for common shares of the Corporation equal in number to five percent of the number of flow-through common shares sold. Each broker warrant will entitle the agent to purchase one common share of the Corporation at a price of $1.30 for a period of 18 months after the offering closes.

The flow-through common shares to be issued under this offering will be sold on a 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.

Ashton will utilize the proceeds of the offering to support the Corporation's diamond exploration projects in Quebec and elsewhere in Canada.

Ashton's prime objective is the discovery or acquisition of diamond prospects capable of rapid advancement to development and production. Ashton has positioned itself among the leading explorers in the Canadian diamond industry. Its key competitive advantages include significant exploration experience and its in-house processing and laboratory facilities in North Vancouver dedicated exclusively to Ashton's exploration projects.