NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
JAG - TSX
CONCORD, NH, March 12 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG-TSX) announced today that it has priced its previously
announced private placement ("the Offering") of $75,000,000 of Units. The
Units were sold by a syndicate led by TD Securities Inc. and included
Blackmont Capital Inc., BMO Capital Markets and RBC Capital Markets. The
underwriters have been granted an option to purchase up to 15% of the number
of the Units offered to cover over-allotments, which if exercised, would
result in gross proceeds of C$86.25 million. The offering is expected to close
on or about Thursday, March 22, 2007.
The Units are comprised of a secured note in the principal amount of
$1,000, bearing a coupon of 10.5%, payable semi-annually in arrears, and 25
common shares of Jaguar, which in aggregate represents approximately 3%
dilution to existing shareholders. It is expected that the notes and shares
will be listed on the Toronto Stock Exchange as soon as possible following the
expiry of any statutory hold periods.
The Company intends to use the net proceeds from this Offering to
continue exploration and development work in the Paciencia Region, advance
other Company properties including assessment and feasibility studies at the
Caeté Project, and acquire long lead-time components critical to the overall
development of mining operations, and other general corporate purposes.
Daniel R. Titcomb, Jaguar's President and CEO stated, "We are very
pleased with the market's response to this Offering. The strong interest from
investors demonstrates their belief in Jaguar and our ability to enhance
shareholder value. Moreover, we believe our ability to secure the financing to
fully fund our announced growth initiatives to reach the 300,000 oz level of
gold output in 2009 removes a level of uncertainty that might have existed
with respect to our capital sources prior to this Offering."
Jaguar is one of the fastest growing gold producers in Brazil with
operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar
is actively exploring and developing additional mineral resources at its
72,000 acre land base. Additional information is available on the Company's
website at www.jaguarmining.com.
Forward Looking Statements
This press release contains forward-looking statements concerning
Jaguar's objectives in the years ahead, the measured and indicated resources,
their average grade, the commencement period of production, cash operating
costs and completion dates of feasibility studies, gold production and sales
targets, capital expenditure costs, future profitability and growth in
reserves. Forward-looking statements can be identified by the use of words,
such as "are expected", "is forecast", "approximately" or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, or performance to be
materially different from any future results or performance expressed or
implied by the forward-looking statements.
These factors include the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in interpreting
drilling results and other ecological data, fluctuating gold prices and
monetary exchange rates, the possibility of project cost delays and overruns
or unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, uncertainties
related to production rates, timing of production and the cash and total costs
of production, changes in applicable laws including laws related to mining
development, environmental protection, and the protection of the health and
safety of mine workers, the availability of labor and equipment, the
possibility of labor strikes and work stoppages and changes in general
economic conditions. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward-looking information, there may be
other factors that cause actions, events or results to differ from those
anticipated, estimated or intended.
These forward-looking statements represent our views as of the date of
discussion. The Company anticipates that subsequent events and developments
may cause the Company's views to change. The Company does not undertake to
update any forward-looking statements, either written or oral, that may be
made from time to time by or on behalf of the Company subsequent to the date
of this discussion. For a discussion of important factors affecting the
Company, including fluctuations in the price of gold and exchange rates,
uncertainty in the calculation of mineral resources, competition, uncertainty
concerning geological conditions and governmental regulations and assumptions
underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE"
regarding forward-looking statements and "RISK FACTORS" in the Company's
Annual Information Form for the year ended December 31, 2005 filed on System
for Electronic Document Analysis and Retrieval ("SEDAR") and available at
Jaguar's securities have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered, sold or resold in the United
States or to a U.S. person absent registration or an applicable exemption from
the registration requirements. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
For further information:
For further information: Investors and analysts: Bob Zwerneman, Director
of Investor Relations, (603) 224-4800, firstname.lastname@example.org; Media inquiries:
Valéria Rezende DioDato, Director of Communication, (603) 224-4800,