FM completes $14.81 million financing
VANCOUVER, Dec. 21 /CNW/ - First Quantum Minerals Ltd. (TSE Symbol "FM")
is pleased to announce that it has completed a private placement of Cdn.
$14.81 million, through Canaccord Capital (Europe) Limited ("Canaccord
Europe") acting as agent. The private placement consisted of 4,936,258 Common
Shares of First Quantum at a price of $3.00 per Common Share. The net proceeds
will be used by the Company to repay the loan from Glencore International AG
("Glencore") in the amount of US$9.6 million which was advanced to First
Quantum to fund its portion of the purchase price of the Mufulira and Nkana
Mines, Concentrators, Smelter and Refineries.
Approximately 90% of the net subscription proceeds, has been placed in
escrow. A portion of the funds in escrow will be released to First Quantum if
(i) it obtains a listing for its common shares on the London Stock Exchange's
Alternative Investment Market ("AIM") within 120 days from the date of
issuance of the Common Shares and (ii) it fully discharges its obligations
under the Glencore Loan Agreement on or before April 30, 2001. The balance of
the funds in escrow will be released to First Quantum if it fully discharges
its obligations under the Glencore Loan Agreement on or before April 30, 2001.
In the event First Quantum does not obtain an AIM listing for its Common
Shares or does not discharge its debt obligation to Glencore, the purchasers
shall be entitled to require First Quantum to repurchase their shares at the
subscription price.
Canaccord Europe will be assisting First Quantum in obtaining a listing
on the AIM. First Quantum has appointed Nabarro Wells & Co. Limited as its
Nominated Advisor ("NOMAD") to facilitate the AIM listing process. An AIM
listing offers the benefits of the London Stock Exchange's ("LSE") reputation,
prestige and expertise and is considered as a stepping-stone to a full LSE
listing. An AIM listing also provides the Company an alternative access to
venture capital, a new market for its shares and the ability to expand its
public profile in Europe.
First Quantum Minerals Ltd. is a rapidly growing integrated mining and
metals company whose principal activities include mineral exploration,
development, mining, smelting and refining. The Company is focused on the
copper and cobalt sectors in Africa. Its operations in Zambia include the 100%
owned Bwana Mkubwa copper mine and sulphuric acid plant; the 44% owned Nkana
copper mine and cobalt refinery; and the 44% owned Mufulira copper mine,
smelter and copper refinery.
The Offering is subject to receipt by First Quantum of all necessary
regulatory approvals including the approval of The Toronto Stock Exchange.
On Behalf of the Board of Directors
of First Quantum Minerals Ltd.
"G. Clive Newall"
G. Clive Newall |
