TOMBSTONE EXPLORATION CLOSES PRIVATE PLACEMENT
October 24, 2007
TOMBSTONE, AZ -- October 24, 2007 -- Tombstone Exploration Corporation (OTC BB: TMBXF.OB – News) is pleased to announce the closing today of its non-brokered private placement of 2.5 million common shares at a price of $0.20 per share, for gross proceeds of $500,000. Each purchaser also received a three (3) year, half share warrant to purchase additional shares at $0.40. Finders' fees of $35,000, converted into 175,000 shares of common stock, were paid in connection with the private placement.
The proceeds of this offering will be used to continue the Company’s drilling and exploration program, geologic mapping, surface trenching, sampling and for general working capital requirements at its properties in the Tombstone District in Arizona. The Tombstone project property consists of 319 unpatented mining claims on BLM administered lands that were acquired December 1, 2006. Seven exploration permits, encompassing 3,071.59 acres, from the Arizona State Land Department were obtained on
April 17, 2007 that are renewable up to five years and may be converted to mineral leases if mineral is of sufficient grade to be mineable is demonstrated.
Tombstone Exploration Corporation also acquired the mineral rights February 17, 2007 to over 145 acres. Included in the acquisition were the mineral rights to the State of Maine mine. It is the most important past producing mine in the Western Area of the Tombstone Mining District. A historical report, “Report on The Mellgren Mines Tombstone Mining District Cochise County Arizona,” that is non-compliant with NI 43-101 and was prepared in June 1928 by C. J. Sarle, PhD., stated the following:
“The early work done on the State of Maine, San Pedro and Chance Mines was with no better equipment than a steam hoist and hand steel. In this way silver-gold ore, as earlier stated to the gross value of $3,500,000.00, was taken from the State of Maine.”
Sarle also indicated that the workings in the western area did not extend below the water level and the ores were oxides.
According to B.S. Butler, et.al. reporting in University of Arizona Bulletin Vol. IX, No. 1 – Geology and Ore Deposits of the Tombstone District, Arizona (Jan. 1938) the State of Maine was mined for 480 feet along an inclined vein and for 900 feet along strike. The vertical depth of the State of Maine reached was 325 feet from the shaft collar.
FORWARD-LOOKING STATEMENTS
Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements are estimates only, as the Company has not completed the preparation of its financial statements for those periods, nor has its auditor completed the audit of those results. Actual revenue may differ materially from those anticipated in this press release. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Tombstone Exploration Corporation’s ability to obtain additional financing. Tombstone Exploration Corporation undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Tombstone Exploration Corporation’s expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Tombstone Exploration Corporation’s success are more fully disclosed in Tombstone Exploration Corporation most recent public filings with the U.S. Securities and Exchange Commission.
CONTACT:
Tombstone Exploration Corporation
Alan M. Brown, President
abrown@tombstonemining.com
Investor Relations:
The Eversull Group, Inc.
Jack Eversull
972-378-7917
972-378-7981 (fax)
jack@theeversullgroup.com
