Are these prices correct?. MNG does a flow through priced 25% ABOVE the current market price?
Miramar Plans Flow-Through Private Placement for Approximately $12 Million
Friday October 1, 8:36 am ET
Allows Accelerated Exploration of the Hope Bay Belt, with Drilling Set to Resume in November
VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 1, 2004-- Miramar Mining Corporation (TSX:MAE - News; AMEX:MNG - News) today announced that a syndicate of underwriters (collectively the "Underwriters") has agreed to purchase by private placement, 6,000,000 Flow-Through Common shares at a price of $2.00 per share for gross proceeds of $12,000,000 (the "Offering"). The Underwriters also have an option to increase the Offering by an additional 1,500,000 Flow-Through Common Shares at the offering price to raise a further $3,000,000 exercisable any time prior to November 30, 2004. The Underwriters have the right to substitute purchasers. Miramar plans to use the net proceeds of this financing to advance its Nunavut projects.
"This financing will allow us to accelerate the exploration of our Nunavut projects, particularly the Madrid area of the Hope Bay belt." said Tony Walsh, Miramar's President and CEO. "We believe the 2004 drilling results warrant an aggressive follow-up campaign to determine just how large the Naartok deposit at Madrid might be, and we are now planning a follow-up drill program for early November."
The Offering is scheduled to close on or about October 18, 2004. The Offering is subject to, among other things, receipt by Miramar of all necessary regulatory approvals, including the approval of The Toronto Stock Exchange and the American Stock Exchange. The proceeds of the Offering will be used to incur Canadian Exploration Expenditures on the Hope Bay and Back River projects in Nunavut. The common shares sold in the offering will be subject to statutory and Toronto Stock Exchange hold periods.
In consideration for their services, the Underwriters will receive a 5% cash commission and a broker warrant exercisable for common shares equal to 5% of the number of Flow-Through Common Shares sold. The broker warrants will be exercisable at a price of $2.00 per common share for a period of 12 months following the closing date.
The securities being offered have not and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to U.S. persons without registration unless an exemption from registration is available. This news release does not constitute an offer for sale of securities in the United States.
All amounts are in Canadian Dollars.
Miramar Mining Corporation controls the 80km long Hope Bay Archean Greenstone belt, and has an option to earn up to 60% of the Back River project. |
