Post by Franko10 ™ on Mar 4, 2005 9:02:11 GMT -5
Shore Gold announces $100 million bought equity financing and strategic investment by Newmont (cnw)
Stock Symbol: SGF: TSX
SASKATOON, SK, March 4 /CNW/ - Kenneth E. MacNeill, President and Chief Executive Officer of Shore Gold Inc. ("Shore") is pleased to announce that Shore has entered into an agreement with a syndicate of underwriters, led by Genuity Capital Markets, under which the underwriters have agreed to buy and to sell to the public 18.2 million Common Shares of Shore from treasury, at a price of $5.50 per Common Share for gross proceeds of $100.1 million. Shore has granted the underwriters an option to purchase an additional 3.0 million shares at the same price up to 48 hours prior to closing.
Shore intends to use the net proceeds of the offering for the exploration and development of the Star Kimberlite Project and for general corporate purposes.
Shore is also pleased to announce that Newmont Mining Corporation of Canada Limited ("Newmont") will subscribe for 8.95 million common shares under this offering. If the underwriters' option is exercised, Newmont will subscribe for a further 297,000 common shares. After this offering, Newmont will own 9.9% of the issued shares of Shore. Newmont is the world's largest gold producer with significant assets or operations on five continents.
Ken MacNeill, President and CEO of Shore said, "We are extremely pleased with Newmont's vote of confidence through its participation in this financing. Following this offering, Shore will be well positioned to pursue an aggressive path to advance the Star Diamond Project. "
Pierre Lassonde, President of Newmont commented, "Newmont's technical mining expertise as well as the size and quality of the Star Deposit creates value-generating opportunities for both Newmont's and Shore's shareholders".
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Shore trade on the TSX Exchange under the trading symbol "SGF".
The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
The information in this news release contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties which are beyond Shore Gold's control, including: the impact of general economic conditions and the price of diamonds. Shore's actual results and performance could differ materially from those expressed in, or implied by, such forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Shore Gold will derive from them.
/For further information: Kenneth E. MacNeill, President & C.E.O. or Harvey Bay, C.F.O. at (306) 664-2202./
Stock Symbol: SGF: TSX
SASKATOON, SK, March 4 /CNW/ - Kenneth E. MacNeill, President and Chief Executive Officer of Shore Gold Inc. ("Shore") is pleased to announce that Shore has entered into an agreement with a syndicate of underwriters, led by Genuity Capital Markets, under which the underwriters have agreed to buy and to sell to the public 18.2 million Common Shares of Shore from treasury, at a price of $5.50 per Common Share for gross proceeds of $100.1 million. Shore has granted the underwriters an option to purchase an additional 3.0 million shares at the same price up to 48 hours prior to closing.
Shore intends to use the net proceeds of the offering for the exploration and development of the Star Kimberlite Project and for general corporate purposes.
Shore is also pleased to announce that Newmont Mining Corporation of Canada Limited ("Newmont") will subscribe for 8.95 million common shares under this offering. If the underwriters' option is exercised, Newmont will subscribe for a further 297,000 common shares. After this offering, Newmont will own 9.9% of the issued shares of Shore. Newmont is the world's largest gold producer with significant assets or operations on five continents.
Ken MacNeill, President and CEO of Shore said, "We are extremely pleased with Newmont's vote of confidence through its participation in this financing. Following this offering, Shore will be well positioned to pursue an aggressive path to advance the Star Diamond Project. "
Pierre Lassonde, President of Newmont commented, "Newmont's technical mining expertise as well as the size and quality of the Star Deposit creates value-generating opportunities for both Newmont's and Shore's shareholders".
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Shore trade on the TSX Exchange under the trading symbol "SGF".
The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
The information in this news release contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties which are beyond Shore Gold's control, including: the impact of general economic conditions and the price of diamonds. Shore's actual results and performance could differ materially from those expressed in, or implied by, such forward looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Shore Gold will derive from them.
/For further information: Kenneth E. MacNeill, President & C.E.O. or Harvey Bay, C.F.O. at (306) 664-2202./