Echo Bay Announces Underwriters' Exercise of Over-Allotment Option
EDMONTON, Alberta, May 21, 2002 /PRNewswire-FirstCall via COMTEX/ -- 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.
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SOURCE Echo Bay Mines Ltd.
CONTACT: Lois-Ann L. Brodrick, Vice President and Secretary of Echo Bay
Mines Ltd., +1-780-496-9704
URL: echobay.com
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