Duluth Metals Announces Closing of CDN $30 Million Convertible Debenture Financing

TORONTO, April 10, 2013 /PRNewswire/ --

Duluth Metals Limited ("Duluth Metals") ("Company") (TSX: DM) (TSX:DM.U) today announced that the Company has closed its previously announced convertible debenture financing with purchasers including CEF (Capital Markets) Limited for CDN $30 Million aggregate principal amount of unsecured convertible debentures of Duluth Metals. The debentures mature April 10, 2018 and bear interest at an annual rate of 7.5%. The debentures are convertible into common shares of the Company at a conversion price based on a 30% premium to the 20 day volume-weighted average price (VWAP) of the common shares at the close of trading on March 28, 2013. 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 Project, the Company's continued exploration expenses on its 100% owned properties and for general corporate purposes. The Twin Metals Project is a large underground copper-nickel-palladium-platinum-gold mining development project in Northern Minnesota and is a joint venture between the Company and Antofagasta plc. The 100% owned exploration properties cover over 40,000 acres in close proximity to the Twin Metals Project and within the Duluth Complex.

The debentures have not been and will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions.

About CEF (Capital Markets) Limited

CEF (Capital Markets) Limited is a wholly owned subsidiary of CEF Holdings Limited, which 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 group market cap in excess of $100 billion as of February 28, 2013. CIBC is a leading North American financial institution with operations around the world. CEF Holdings Limited 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 Project.

For further information:

Mara Strazdins
Vice President Investor Relations and Corporate Communications
Telephone: +1(416)369-1500 ext. 222
Email: [email protected]

Vern Baker
President
Telephone: +1(651)389-9990
Email: [email protected] 

Webpage: http://www.duluthmetals.com

(DM. DM.U.)

SOURCE Duluth Metals Limited