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TORONTO, Dec. 22 /CNW/ - Chieftain Metals Inc. ("Chieftain" or the "Company") is pleased to announce the closing of its initial public offering today of 2,500,000 common shares at a price of $5.00 per common share and 910,000 flow-through common shares at a price of $5.50 per common share, resulting in gross proceeds of approximately $17.5 million (the "Offering").
The Offering was led by Wellington West Capital Markets Inc., with a syndicate of agents that included Raymond James Ltd. and Haywood Securities Inc. (collectively, the "Agents"). The Company has granted an over-allotment option to the Agents, exercisable for a period of 30 days from the date hereof, to purchase up to an additional 511,500 common shares at a price of $5.00 per common share to cover over-allotments, if any. Immediately prior to the closing of the Offering, the Company closed a private placement of flow-through shares for gross proceeds of approximately $1.2 million.
The common shares are listed on the Toronto Stock Exchange under the symbol "CFB" and will begin trading today. Net proceeds of the offering will be used to initiate the recommended Phase 1 work program at the Tulsequah Chief Deposit and the drilling program at the Big Bull Deposit, and to repay a portion of certain indebtedness of the Company.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation of sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of the securities in the United States may only be made by means of a prospectus containing detailed information about the Company and its management as well as financial statements.
About Chieftain Metals Inc.
Chieftain Metals Inc.'s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Polymetallic Project, in northwestern British Columbia, Canada. The Tulsequah Project consists of 38 mineral claims and Crown-grants covering approximately 14,220 hectares and covers two previously producing mines. For more information on the Tulsequah Project, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR (www.sedar.com).
This press release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Company to vary or to be materially different from those expressed or implied by such forward looking statements, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Company's final prospectus dated December 16, 2010. Forward-looking statements are based on a number of assumptions, including assumptions regarding general market conditions, the availability of financing for proposed transactions and programs on reasonable terms and the availability of outside service providers to deliver services in a satisfactory and timely manner. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company; however, these factors and assumptions should be considered carefully by readers. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law.
For further information: For further information:
President & CEO
Telephone: (416) 644-6000 ext. 650