Duluth Metals Announces CDN $30 Million Convertible Debenture Financing

TORONTO, April 1, 2013 /PRNewswire/ --

Duluth Metals Limited ("Duluth Metals") ("Company") (TSX: DM) (TSX:DM.U) today announced that the Company has entered into a binding term sheet with CEF Holdings Limited ("CEF") to issue and sell to CEF CDN $30 Million in aggregate principal amount of unsecured convertible debentures of Duluth Metals. The debentures will carry a 7.5% coupon over a 5 year term with a conversion price based on a 30% premium to the 20 day volume-weighted average price (VWAP) of Duluth Metals shares at the close of trading on March 28, 2013.  Accordingly, the 20 day VWAP is $1.74 and the conversion price is $2.26.  The financing will be used to fund certain development expenses of the Twin Metals Minnesota Project ("TMM"), the Company's expenses on its 100% owned exploration properties and for general corporate purposes. TMM is a large mining development project in Northern Minnesota and is a joint venture between the Company and Antofagasta plc.  Antofagasta plc and Wallbridge Mining Company Limited each have pre-emptive participation rights to participate in this financing by purchasing additional debentures to the CDN $30 Million funding.  The financing is subject to the satisfaction of customary conditions, including listing approval by the Toronto Stock Exchange of the underlying convertible common shares.

About CEF Holdings Limited

CEF Holdings Limited is owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce ("CIBC"). Cheung Kong (Holdings) Limited is the publicly-listed flagship company of the Cheung Kong Group of companies, the Hong Kong based multi-national conglomerate with a combined market cap of the Group in excess of $100 billion as of February 28, 2013. CIBC is a leading North American financial institution with operations around the world. CEF is an investor in significant resource assets on a global basis.

About Duluth Metals Limited

Duluth Metals Limited is committed to acquiring, exploring and developing copper, nickel and platinum group metal (PGM) deposits. Duluth Metals has a joint venture with Antofagasta plc on the Twin Metals Project, located within the rapidly emerging Duluth Complex mining camp in north-eastern Minnesota. The Duluth Complex hosts one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals. Aside from the joint venture, Duluth Metals retains a 100% position on approximately 40,000 acres of mineral interests on exploration properties adjacent to or nearby the Twin Metals Minnesota LLC joint venture. 

SOURCE: Duluth Metals Limited

For further information:

Mara Strazdins
Vice President Investor Relations and Corporate Communications
Telephone: +1(416)369-1500 ext. 222
Email: mstrazdins@duluthmetals.com

Vern Baker
President
Telephone: +1(651)389-9990
Email: vbaker@duluthmetals.com 

Webpage: http://www.duluthmetals.com

(DM. DM.U.)


SOURCE Duluth Metals Limited



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