<<<-- Cumberland Resources Ltd.: $14.675 Million Financing Arranged --
NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: CUMBERLAND RESOURCES LTD.
TSE SYMBOL: CBD
MAY 23, 2002
Cumberland Resources Ltd.: $14.675 Million Financing Arranged
VANCOUVER, BRITISH COLUMBIA--Not for distribution to United States News
Wire Services or for dissemination in the United States.
Cumberland Resources Ltd. (CBD-TSE) (the "Company") is pleased to announce
that, subject to regulatory approval, the Company has entered into an
agreement with Canaccord Capital Corporation under which Canaccord has
agreed to purchase 4,000,000 units at a price of $2.60 per Unit for
aggregate gross proceeds of $10,400,000 on a bought deal basis. Each Unit
consists of one common share and one half of a non-transferable share
purchase warrant. One whole warrant will be exercisable for the purchase of
one common share of the Company at a price of $3.00 per share for a period
of 12 months from the date of closing.
The Underwriters will have an option until 48 hours from closing to
purchase up to an additional 1,500,000 flow-through common shares priced at
$2.85 per share. The offering is expected to close on or about June 12,
2002.
The Underwriters will receive a 6.0% commission and broker warrants that
entitles the Underwriters to purchase shares equal to 8% of the issued
Units and the flow-through common shares at a price of $2.60 per share. The
warrants will expire 12 months from the closing of the financing.
It is the intention of the Company to use the net proceeds from the
issuance of the Units and shares to advance its Meadowbank Gold Project and
for general working capital.
Cumberland Resources Ltd. is positioning itself to become North America's
next mid-tier level gold producer by advancing the Meadowbank Project to
production.
Cumberland Resources holds interests in two of the largest undeveloped gold
projects in Canada: Meadowbank (100%) and Meliadine West (22% carried).
CUMBERLAND RESOURCES LTD.
Glen D. Dickson, P.Geol.
President
This document contains certain forward looking statements which involve
known and unknown risks, delays, and uncertainties not under the
Corporation's control which may cause actual results, performance or
achievements of the Corporation to be materially different from the
results, performance or expectations implied by these forward looking
statements. >>> |
