Miramar Plans Flow-Through Financing for Approximately $7.3 Million Wednesday June 18, 1:14 pm ET To Provide Continued Funding For Exploration At The Hope Bay Project
VANCOUVER, British Columbia--(BUSINESS WIRE)--June 18, 2003-- Miramar Mining Corporation (TSX:MAE - News; AMEX:MNG - News) today announced that it has engaged a Canadian investment dealer as its agent to place by way of private placement, approximately 3,475,000 flow-through common shares at a price of $2.10 per share to raise gross proceeds of approximately $7,297,500 (the "Offering"). "Given the exceptional exploration results from Hope Bay, where we have doubled the depth extent of the Boston mineralization and the Suluk mineralization in the Madrid area, continued aggressive exploration of these areas is clearly warranted," said Anthony Walsh, Miramar's President & CEO. "This financing would be used to fund proposed work programs at Hope Bay."
The Canadian investment dealer (the Underwriter) has agreed to offer, 2,450,000 flow-through common shares (and has agreed to purchase any flow through common shares not otherwise sold) at a price of C$2.10 per common share, on a private placement basis, for aggregate proceeds of $5,145,000. The Underwriter has the option, at its sole discretion, to increase the issue size by up to an additional approximately 1,025,000 flow-through common share on the same terms and conditions for additional gross proceeds of approximately $2,152,500, such right to be exercisable up to 5:00 PM Toronto time on June 18, 2003. The proceeds of the Offering will be released on the closing date of the Offering which is expected to be on or around June 24, 2003 and would be used to incur Canadian Exploration Expenditures on the Hope Bay project in Nunavut. The common shares sold in the offering would be subject to statutory and Toronto Stock Exchange hold periods.
In consideration for its services, the Underwriter will receive a 6% cash commission and a broker warrant exercisable for common shares equal to 6% of the number of flow-through common shares sold. The broker warrant will be exercisable at a price of $2.10 per common share for a period of 12 months following the closing date.
The Offering is subject to, among other things, receipt by Miramar of all necessary regulatory approvals, including the approval of The Toronto Stock Exchange.
The flow-through common shares will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state. These securities 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 has been authorized by the undersigned on behalf of Miramar Mining Corporation.
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