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VANCOUVER, April 16 /CNW/ - Capstone Mining Corp. (TSX:CS) (the
"Company") today announced that it has entered into an agreement with a
syndicate of underwriters led by Canaccord Capital Corporation and including
BMO Capital Markets, Scotia Capital Inc., Haywood Securities Inc. and PI
Financial Corp. (collectively, the "Underwriters") to purchase an aggregate of
27,100,000 common shares of the Company ("Common Shares") at a price of $1.85
for gross proceeds of $50,135,000 on a bought deal basis (the "Offering").
The Company has granted the Underwriters an option (the "Over-Allotment
Option") to purchase up to an additional 4,065,000 Common Shares at a price of
C$1.85 per Common Share to cover over-allotments. The Over-Allotment Option
shall be exercisable by the Underwriters, in whole or in part, any time up to
30 days following the closing of the Offering.
The net proceeds of the Offering will be used for future acquisition
opportunities, debt repayment and general working capital purposes.
The Offering is scheduled to close on or about May 6, 2009 and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX and the securities
regulatory authorities.
The Common Shares to be issued under this offering will be offered by way
of a short form prospectus in applicable provinces in Canada and in the United
States on a private placement basis pursuant to an exemption from the
registration requirements of the United States Securities Act of 1933, as
amended (the "1933 Act"), and such other jurisdictions as may be agreed upon
by the Company and the Underwriters.
The Common Shares will not be and have not been registered under the 1933
Act and may not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements. This press release
does not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the Common Shares in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Capstone Mining
Capstone Mining Corp. owns and operates two high grade copper mines and
has an advanced high grade development project. The Cozamin Mine is a high
grade, relatively shallow mechanized underground copper mine in Zacatecas,
Mexico, with significant by-product credits of zinc, lead and silver. The
Minto Mine is one of the world's highest grade open pit copper-gold mines, and
is located in Yukon, Canada. Both mines have recently undergone significant
production expansions and the mines are forecast to produce a total of 95-105
million pounds of copper in 2009 at a total cash cost of approximately US$1.00
per pound, net of by-product credits. In addition, Capstone owns the high
grade Kutcho Copper Project in British Columbia, Canada, which is being
advanced towards a production decision, and could produce significant
by-products of zinc, silver and gold. Financially, Capstone is well positioned
and its operations are supported by a robust hedge book that totalled 105
million pounds of copper forward sold at an average of US$2.52 per pound as of
December 31, 2008, most of which is deliverable in 2009-2011.
Additional information on Capstone can be obtained on Capstone's website
at
