Polaris Minerals announces closing of CAD$25 million bought deal financing



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/
    

    VANCOUVER, Jan. 8 /CNW/ - Polaris Minerals Corporation (the "Company") is
pleased to announce that it has closed its previously announced $25 million
bought deal financing. A syndicate of underwriters, led by GMP Securities L.P.
and including CIBC World Markets Inc., Desjardins Securities Inc., Macquarie
Capital Markets Canada Ltd., TD Securities Inc. and Scotia Capital Inc.
(collectively, the "Underwriters"), has purchased, on a bought deal basis,
15,625,000 units (the "Units") of the Company at a price of $1.60 per Unit,
for aggregate gross proceeds of approximately $25 million (the "Offering").
Each Unit consists of one common share (a "Common Share") of the Company and
one half of a Common Share purchase warrant (each full warrant a "Warrant")
with each Warrant entitling the holder thereof to purchase an additional
Common Share of the Company at the exercise price of $2.25 per Common Share
for a period of two years following the closing of the Offering.

    The Company plans to use the net proceeds from the Offering to repay an
outstanding $20 million bridge loan and for general corporate purposes.
    Herb Wilson, President and CEO of Polaris said: "We are pleased to be
able to pay off the bridge loan that we used to acquire the strategic Pier B
site in the Port of Long Beach, CA. The Company has a strong balance sheet and
we will improve our cash position by eliminating the remaining interest
expense associated with the bridge loan. We are well positioned to continue
with our business plan which we expect to benefit from the anticipated growth
in infrastructure investment which has been proposed by the incoming US
administration and we do not have plans for significant capital expenditures
before 2011."

    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
securities have not been 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.

    About Polaris Minerals Corporation

    Polaris Minerals Corporation is exclusively focused on the development of
quarries and the production of construction aggregates on Vancouver Island,
British Columbia, for marine transport to urban markets on the west coast of
North America to meet growing local supply deficits. In 2007, Polaris began
shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver,
and Hawaii.

    
    Cautionary Note Regarding Forward-Looking Statements
    ----------------------------------------------------
    

    This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable securities
laws. These statements and information appear in this document and include
estimates, forecasts, information and statements as to management's
expectations with respect to, among other things the future financial or
operating performance of the Company, costs and timing of the development of
the construction aggregate quarry, the timing and amount of estimated future
production, costs of production, capital and operating expenditures,
requirements for additional capital, government regulation of quarrying
operations, environmental risks, reclamation expenses, and title disputes.
Often, but not always, forward-looking statements and information can be
identified by the use of words such as "may", "will", "should", "plans",
"expects", "intends", "anticipates", "believes", "budget", and "scheduled" or
the negative thereof or variations thereon or similar terminology.
Forward-looking statements and information are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Readers are cautioned that any such
forward-looking statements and information are not guarantees and there can be
no assurance that such statements and information will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from the Company's expectations are disclosed
under the heading "Risk Factors" in the Company's final prospectus dated
December 31, 2008 in respect of the Offering, which is filed with Canadian
regulators on SEDAR (www.sedar.com). Except as required by law, the Company
expressly disclaims any intention or obligation to update or revise any
forward-looking statements and information whether as a result of new
information, future events or otherwise. All written and oral forward-looking
statements and information attributable to us or persons acting on our behalf
are expressly qualified in their entirety by the foregoing cautionary
statements.




For further information:

For further information: Herb Wilson, President and CEO or Mike
Westerlund, Director, Corporate Development, Polaris Minerals Corporation.,
Tel: (604) 915-5000, info@polarmin.com

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Polaris Minerals Corporation

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