BRISBANE, AUSTRALIA--(Marketwire - Nov. 22, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Intrepid Mines Limited (TSX:IAU)(ASX:IAU) ("Intrepid" or the "Company") is pleased to announce that it has entered into an agreement for a bought deal financing with a syndicate of underwriters led by RBC Capital Markets (as Lead Manager and Sole Bookrunner) and Wellington West Capital Markets (as Co-Lead Manager), under which the underwriters have agreed to purchase a total of 63,400,000 Ordinary Shares, at a price of C$1.77 per Ordinary Share for gross proceeds of C$112,218,000 (the "Offering"). The syndicate of underwriters also includes Canaccord Genuity Corp, RBS Morgans and MacDougall, MacDougall & MacTier. Intrepid received financial advice from Gryphon Partners.
In addition to the Offering, Intrepid intends to undertake a share purchase plan ("SPP") under which shareholders of the Company with registered addresses in Australia and New Zealand as at the close of business on November 22, 2010 will be given the opportunity to apply for up to A$15,000 worth of shares at the Australian dollar equivalent price per share.
The net proceeds of the Offering and the SPP will be used to fund on-going exploration and feasibility studies at the Company's flagship project in Indonesia, Tujuh Bukit, and for general corporate purposes. The Offering is expected to close on or about December 10, 2010 and is subject to Intrepid receiving all necessary regulatory approvals. Closing of the Offering is not conditional upon the SPP.
Intrepid's CEO, Brad Gordon, remarked: "The proceeds generated by this equity raise will enable Intrepid to increase the level of activity at Tujuh Bukit, where we have recently announced a substantial inaugural resource for our copper/gold porphyry zone. These funds place the Company in a strong position to advance Tujuh Bukit through to the completion of key milestones, which we believe could unlock significant value for our shareholders."
A preliminary short-form prospectus for the Offering will be filed with the securities regulatory authorities in the Canadian provinces of British Columbia, Alberta, Manitoba, Ontario and Nova Scotia. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The prospectus will not be prepared in accordance with, will not be a disclosure document for the purposes of, the Australian Corporations Act 2001 (Cth) ("Corporations Act") and will not been lodged with the Australian Securities and Investments Commission. This prospectus does not constitute an offer or invitation to purchase securities in Australia if such an offer would require disclosure to investors under Chapter 6D of the Corporations Act.
This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.
Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.