Madalena Ventures has increased its previously announced bought deal financing with a syndicate of underwriters led by Casimir Capital Ltd. pursuant to which the Underwriters will now acquire, on a bought deal basis, 48,000,000 common shares at a price of $1.25 per common share to raise gross proceeds of $60,000,000 (the "Offering"). Madalena has also granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase, on the same terms, up to an additional 6,000,000 common shares. The Over-Allotment Option is exercisable in whole or in part by the Underwriters at any time up to 30 days after closing. If the Over-Allotment Option is exercised in full, the maximum gross proceeds raised would be $67,500,000.

The net proceeds of the Offering will be used to fund the Company's capital expenditure program and for other general corporate purposes.

The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus and on a private placement basis elsewhere where permitted pursuant to applicable exemptions from the prospectus and registration requirements. The closing of the Offering is expected to occur on or about March 7, 2012, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Tags: Madalena Ventures Inc.