Smartstockz

[december]

Brilliant Mining closes $2-million private placement


2006-02-17 22:39 ET - News Release

Mr. Mike Sieb reports

BRILLIANT MINING CORP. ANNOUNCES CLOSING OF $2,065,000 BROKERED PRIVATE PLACEMENT

Brilliant Mining Corp. has closed a brokered private placement of 6.4 million units consisting of 3.5 million non-flow-through units and 2.9 million flow-through units for gross proceeds of $2,065,000.

The proceeds from the flow-through component of the financing will be primarily dedicated to Brilliant's western Labrador projects including $750,000 approved for the Michikamau nickel, copper and platinum group element project where eight high-priority EM targets were delineated in 2005. The 2006 exploration program on the Michikamau project will entail approximately 275 line kilometres of detailed airborne geophysics culminating in a 1,000-metre drill program planned for August.

Each non-FT unit was sold at a price of 30 cents and consisted of one common share of Brilliant and one non-transferable share purchase warrant entitling the holder to acquire one additional common share at a price of 40 cents per common share. Each FT unit was sold at a price of 35 cents and consisted of one common share issued as a flow-through share pursuant to the Income Tax Act (Canada) and one non-transferable share purchase warrant entitling the holder to acquire one additional common share at a price of 45 cents per common share. The non-FT unit warrants and the FT unit warrants may be exercised at any time within two years of issuance, provided that if at any time after June 17, 2006, the weighted average trading price of the common shares on the TSX Venture Exchange exceeds $1.00 for a period of 10 consecutive days, Brilliant may, within 30 days of such occurrence, give written notice to the holders of warrants that the warrants shall expire on the 30th day following such notice, unless exercised prior to that date.

The units were sold to qualified purchasers in reliance upon exemptions from the registration and prospectus requirements of applicable securities legislation. The proceeds from the sale of the FT units will be used to incur expenditures on the corporation's properties which qualify as Canadian exploration expenses.

Pacific International Securities Inc. acted as agent and received 8 per cent of the gross proceeds of the offering, which was paid by the issuance of a total of 550,666 non-FT units at a deemed price of 30 cents per unit. The agent also received non-transferable compensation warrants which entitle it to acquire up to 512,000 common shares at an exercise price of 40 cents per common share within two years of issuance, subject to adjustment as to the time within which the agent's warrants may be exercised on the same basis as set forth above for warrants. The corporation also paid the agent a corporate finance fee of $20,000, issued to the agent 50,000 non-FT units at a deemed price of 30 cents per unit, and paid the agent's reasonable costs and expenses related to the offering.

The common shares and warrants comprising the units, including those issued to the agent in payment of the agent's cash commission and corporate finance fee, the common shares issuable upon exercise of the warrants, and upon exercise of the agent's warrants will be subject to a restricted period expiring on June 18, 2006.

We seek Safe Harbor.