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Rodinia Minerals completes 1st tranche of fundraising for lithium projects development

Published: 16:40 20 Apr 2010 BST

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Rodinia Minerals Inc (TSX-V: RM; OTC-QX: RDNAF) has completed the first tranche of its previously announced non-brokered private placing to raise gross proceeds of C$1.5 million through the issuance of 3 million new shares at C$0.50 each. The net proceeds will be used to continue the development of the company’s key projects, and for working capital purposes.

The company has two principal projects, both targeting lithium deposits in salt flats/salar. In the United States Rodinia is exploring the Clayton Valley lithium-brine project in Nevada, while in Argentina it is exploring the Salar de Diablillos.

Rodinia also noted that has received conditional approval for a second tranche of up to C$2 million and it anticipates closing this on or before May 17 2010.

"We expect that these funds will allow us to aggressively pursue development of Diablillos, and should allow us to advance our current program towards a National Instrument 43-101 resource estimate on the property", Rodinia President and CEO David Stein stated previously.

Rodinia is currently conducting a detailed auger drilling program on a 400x400m grid, covering the entire Diablillos property package. The sampling is targeting sub-surface aquifers, which are believed to contain high concentration of lithium. Previous sampling averaged 858 mg/L (milligrams per litre).

Additionally, Rodinia also expects to use some of the funds to increase its property holdings in Nevada, following the success of the recent drill program.

Furthermore, the company is currently in the process of submitting a ‘Plan of Operations’ to Nevada’s Bureau of Land Management, with the intention of permitting 75 drill holes which will allow the  greater flexibility in the definition of the sub-surface aquifer/s.

Last month, Rodinia reported positive results from both of its key projects.

In Argentina, Rodinia reported that the initial results may be indicative of high concentrations of lithium and potash. The initial program consisted of eight holes, across various locations on the salar. Rodinia took five aquifer samples and three surface water samples. The aquifer samples averaged 858 mg/L Li and 2.57 Mg:Li ratio, the company said that these aquifers will be the focus of subsequent exploration programs, to assess the feasibility of future lithium production at Diablillos.

At Clayton Valley, results from the exploration sampling of brines have returned lithium values of up to 400 milligrams per litre (mg/L) and favourable magnesium to lithium ratios (Mg:Li). Rodinia said it was encouraged by the results and it believes, based on previously published data in the area, they may be indicative of higher concentrations of lithium and potash than historically reported commercial production grades there.

Drill hole SPD-09 returned samples averaging 370mg/L lithium, 6,800mg/L potassium and a magnesium-to-lithium (Mg:Li) ratio of 1.2 over 30m. Additionally SPD-09 also included 270mg/L lithium and Mg:Li of 1.3 over 50m. Based on these initial results,

Rodinia expects the mineralized aquifer to continue to exhibit potentially favourable lithium concentrations along the southern extensions of this trend. Drill hole SPD-08 returned samples averaging 123mg/L lithium and 1,300mg/L potassium over 15m.

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