Delta Mining & Exploration (fka DMXC)

[osger]

Delta Mining and Exploration Recieves Definitive Commitment for $500,000 Financing

July 22, 2004 10:00:00 AM ET


LEWISBURG, Ky., July 22 /PRNewswire-FirstCall/ -- Delta Mining and Exploration Corp., (Pink Sheets: DMXP) is pleased to announce the completion of a financing agreement with Platinum Equity Funding Inc., a Toronto based investment house with affiliated offices in New York and London.

Delta will receive between five hundred thousand (U.S. $500,000) to one million four hundred thousand (U.S.$1,400,000) dollars in a series of two payments. The first tranche will be for no less then five hundred thousand (U.S. $500,000) dollars and up to seven hundred thousand (U.S. $700,000) dollars. The closing date is scheduled for August 15th, 2004; with the second tranche being for a similar amount as the first. The aggregate amount could equal up to one million four hundred thousand (U.S. $1,400,000) dollars if Platinum chooses to exercise their over allotment option and the second tranche is fully subscribed.

The financing is in the form of an 8% per annum interest bearing convertible debenture; convertible for a two year period at $0.03 USD per common share. Upon conversion Platinum will receive a half warrant at $.0375 USD for every ordinary share they receive. The warrant will allow Delta to secure additional funds if Platinum chooses to exercise.

Platinum has the right to convert at any time, whereas Delta can force conversion after six months providing the share price is over $.03 USD per share. The debenture has a solid floor price of $0.03 USD that protects Delta from a conversion being forced at a lower price. The underlying securities carry no registration rights, but would be registered if a registration was to be completed within twelve months, otherwise the shares would be subject to having the restriction removed as per Rule 144.

The funds secured via this agreement will be utilized predominantly on the continued exploration of the Homestead Kimberlite, additional targets in the area and general corporate purposes. The debenture signed with Platinum prevents Delta from using any funds for repayment of existing notes.

Delta has already found diamond indicator minerals, a kimberlite and a micro-diamond on the Homestead property. The secured funds will allow the viability of the kimberlite body on the Homestead property to be determined.

The senior investment analyst at Platinum Equity has expressed his enthusiasm over the prospects of the company and their portfolio of high quality properties. Platinum has indicated their primary interest is the Homestead Kimberlite and the surrounding area but acknowledges the balance of Delta's properties display similar potential.

This agreement is distinct from that discussed by the company in its May 5, 2004 news release. Though not completed, both parties are working hard to ensure that it comes to fruition in the near future.

Delta Mining and Exploration Corp, http://www.deltamine.com: is a mineral exploration company with an extensive portfolio of diamond properties in Montana, USA and in Bolivia, South America. Delta controls some 7,500 acres throughout Montana located within the Wyoming Craton where much of North America's diamonds have been found. Another 10,000 acres of prospective diamond properties are controlled in Bolivia, South America.