Echo Bay Announces Underwriters' Exercise of Over-Allotment Option
EDMONTON, Alberta, May 21 /CNW/ -- Echo Bay Mines Ltd.
(Toronto; Amex: ECO) announced today that, following the closing of its
previously announced equity financing which was completed by its underwriters,
BMO Nesbitt Burns and National Bank Financial, the underwriters have given
notice to the Company that they intend to exercise their over-allotment option
to purchase an additional 5,100,000 units at a price of US$0.70 (Cdn$1.098)
per unit pursuant to the terms of the Canadian and the U.S. Underwriting
Agreements. On May 17, 2002, the Company closed an offering of 34,000,000
units at a price of US$0.70 (Cdn$1.098) per unit for gross proceeds to the
Company of US$23,800,000 (Cdn$37,332,000). Following the exercise of the
over-allotment option, total gross proceeds to the Company will be
US$27,370,000 (Cdn$42,931,800). Each unit comprises one common share and one
share purchase warrant. Each warrant entitles the holder to purchase one Echo
Bay common share at an exercise price of US$0.90 per share on or before
November 14, 2003.
Echo Bay mines gold in North America. The primary markets for its common
shares are the American Stock Exchange and the Toronto Stock Exchange. The
warrants trade in US dollars on the Toronto Stock Exchange under the symbol
ECO.WT.U and on the American Stock Exchange under the symbol ECO.WS.
This news release contains forward-looking statements about Echo Bay.
These forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995. The forward-looking statements in this news
release are subject to various risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of Echo Bay, that
could cause actual results to differ materially from those expressed or
implied or projected by the forward-looking statements. |
