Shares outstanding: 287 Million
Symbol & Exchange: BN-TSXV
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER
TO SELL OR THE SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED
MONTREAL, Oct. 25 /CNW Telbec/ - Blue Note Mining Inc. (the "Company") is
pleased to announce that, further to its press releases dated October 23, 2007
and October 24, 2007, it has priced its public offering (the "Offering") of
units (the "Units"). The Company has agreed with a syndicate of agents led by
Desjardins Securities Inc. and including Salman Partners Inc. (together, the
"Agents") for the issuance by the Agents of 71,500,000 Units at a price of
$0.56 per Unit for aggregate gross proceeds of $40,040,000. The Offering price
was determined by negotiation between the Company and the Agents.
Each Unit will consist of one common share in the capital of the Company
(the "Common Shares") and one-half of one Common Share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant shall be exercisable for one Common
Share for a period of 24 months following the closing of the Offering at a
price of $0.67.
The Agents will have an option, exercisable for a period of 30 days
following the closing date of the Offering, to purchase from the Company that
number of Units representing up to 15% of the the Offering.
The Company filed a preliminary short form prospectus describing the
Offering on October 23, 2007 with the securities commissions in each of the
provinces of Canada and, subject to obtaining the necessary regulatory
clearances, anticipates filing a final short form prospectus with the
securities commissions in each of the provinces of Canada on or about October
29, 2007. The Company anticipates that the Offering will close on or about
November 1, 2007. Closing is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the approval of
the applicable securities regulatory authorities.
The net proceeds from the Offering will be used to repurchase and repay
certain debt obligations of the Company and general corporate purposes. A copy
of the preliminary short form prospectus is available on SEDAR at
"We are pleased at the exceptionally strong response to our offering and
the opportunity it presents to substantially strengthen the Company's balance
sheet and its operating flexibility," said Michael Judson, Blue Note's
President and Chief Executive Officer.
The Units, the common shares, the warrants and the common shares issuable
upon exercise of the warrants have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "1933
Act"), and may not be offered or sold in the United States or to U.S.
Persons (as defined in Regulation S under the 1933 Act) except in
accordance with an exemption from the registration requirements of the
1933 Act and applicable state securities laws. 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 jurisdiction in
which such offer, solicitation or sale would be unlawful.
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on the
TSX Venture Exchange under the symbol BN.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
For further information:
For further information: Lorne Woods, Vice President Investor Relations,
Blue Note Mining, 800-937-3095, email@example.com;