$8.02-million greenshoe

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aELM-18788?

2011-09-01 09:49 ET - News Release

Mr. Iain Macpherson reports

ELEMENTAL MINERALS LIMITED ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION

Elemental Minerals Ltd.'s underwriting syndicate of its recently closed initial public offering has exercised in full its overallotment option to purchase an additional 6,370,500 ordinary shares, raising gross proceeds of $8,026,830 (approximately $7.7-million (Australian)). The underwriting syndicate was co-led by BMO Capital Markets and Renaissance Capital, and included Stifel Nicolaus Canada Inc., National Bank Financial Inc., RBC Capital Markets, and CIBC (the "Underwriters").

Under the previously announced offering of 42,470,000 ordinary shares (the "Offering") at a price of C$1.26 (approximately A$1.25) per ordinary share for an aggregate gross proceeds of C$53,512,200, the Company granted the Underwriters an option to purchase up to an additional number of ordinary shares equal to 15% of the number of ordinary shares sold under the Offering at any time during the 30 day period immediately following the closing of the Offering. The total number of ordinary shares in issue following the exercise of the over-allotment will be 222,226,108.

Commenting on the exercise of the over-allotment, Iain Macpherson, Chief Executive Officer of the Company, said: "The exercise of the over-allotment option highlights strong shareholder support for Elemental despite the market downturn. The Company is now well funded having raised C$57,478,738 of net proceeds, which puts us in a good position that allows us to focus on achieving our previously stated project development milestones including delivery of the pre-feasibility component of the DFS by end Q1 2012 and completion of the DFS by end Q1 2013. The Elemental executive is delighted with the outcome of the Company's listing on the TSX and share placement, which has generated the funds required to see us through the DFS".

We seek Safe Harbor.