Capstone Completes Bought Deal Financing, Operations Resume at Cozamin


    Gross Proceeds of C$50.135 million to be used for future acquisitions,
    debt reduction & working capital

    VANCOUVER, May 6 /CNW/ - Capstone Mining Corporation (CS: TSX) today
reported that it has closed the previously announced "bought deal" short form
prospectus offering (the "Offering") of 27,100,000 common shares of the
Company at a price of C$1.85 for gross proceeds of C$50,135,000. A syndicate
of underwriters led by Canaccord Capital Corporation and including BMO Capital
Markets Corp., Scotia Capital Inc., Haywood Securities Inc. and PI Financial
Corp. (collectively, the "Underwriters") acted as underwriters in respect of
the Offering. As previously announced, Capstone granted the Underwriters an
option (the "Over-Allotment Option") to purchase up to an additional 4,065,000
Common Shares at a price of C$1.85 per Common Share to cover over-allotments.
The Over-Allotment Option is exercisable by the Underwriters, in whole or in
part, until June 5, 2009.
    Capstone intends to use the net proceeds of the Offering for future
acquisition opportunities, debt reduction or restructuring and ongoing
operating and general working capital purposes.
    These securities have not been registered under the Securities Act of
1933, as amended, or any state securities laws, and may not be offered or sold
in the United States without registration or an applicable exemption from
applicable registration requirements in the US. 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.

    Mining Resumes at Cozamin Mine

    Further to Capstone's announcement of May 1, 2009, wherein Capstone
reported a five day suspension of operations at its Cozamin Mine in Mexico in
accordance with the Mexican government's decree, which was intended to combat
the H1N1 influenza pandemic, operations resumed at the mine on May 6, 2009. As
previously noted, given the outperformance of the mill in April, Capstone
remains confident that budgeted production will be achieved for the year.

    About Capstone Mining

    Capstone Mining Corp. owns and operates two high grade copper mines and
has an advanced high grade development project. The Cozamin Mine is a high
grade, relatively shallow mechanized underground copper mine in Zacatecas,
Mexico, with significant by-product credits of zinc, lead and silver. The
Minto Mine is one of the world's highest grade open pit copper-gold mines, and
is located in Yukon, Canada. Both mines have recently undergone significant
production expansions and the mines are forecast to produce a total of 95-105
million pounds of copper in 2009 at a total cash cost of approximately US$1.00
per pound, net of by-product credits. In addition, Capstone owns the high
grade Kutcho Copper Project in British Columbia, Canada, which is being
advanced towards a production decision, and could produce significant
by-products of zinc, silver and gold. Financially, Capstone is well positioned
and its operations are supported by a robust hedge book that totaled 105
million pounds of copper forward sold at an average of US$2.52 per pound as of
December 31, 2008, most of which is deliverable in 2009-2011.
    Additional information on Capstone can be obtained on Capstone's website

    The TSX does not accept any responsibility for the adequacy or accuracy
    of this press release.

    Forward-Looking Statements

    This document may contain "forward-looking statements" within the meaning
of Canadian securities legislation and the United States Private Securities
Litigation Reform Act of 1995. These forward-looking statements are made as of
the date of this document and Capstone Mining Corp. (the "Company") do not
intend, and do not assume any obligation, to update these forward-looking
    Forward-looking statements relate to future events or future performance
and reflect management of the Company's expectations or beliefs regarding
future events and include, but are not limited to, statements with respect to
the estimation of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future production, costs
of production, capital expenditures, success of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes or
claims and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or "will
be taken", "occur" or "be achieved" or the negative of these terms or
comparable terminology. By their very nature forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include,
among others, risks related to actual results of current exploration
activities; changes in project parameters as plans continue to be refined;
future prices of resources; possible variations in ore reserves, grade or
recovery rates; accidents, labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; as well as those factors
detailed from time to time in the Company's interim and annual financial
statements and management's discussion and analysis of those statements, all
of which are filed and available for review on SEDAR at
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 statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements.
    Accordingly, readers should not place undue reliance on forward looking

For further information:

For further information: about Capstone, please contact: Darren Pylot,
Vice Chairman & CEO, Stephen Quin, President & COO Or Investor Relations' Mark
Patchett at (604) 684-8894 or (866) 684-8894,

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