/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Aug. 27 /CNW/ - Mercator Minerals Ltd. (the "Company") (TSX -
"ML") is pleased to announce that it has entered into an agreement with a
syndicate of underwriters (the "Underwriters") co-led by Jennings Capital Inc.
and Scotia Capital Inc, and including Blackmont Capital Inc., Haywood
Securities Inc. and Acumen Capital Finance Partners Ltd., which have agreed to
purchase, on a bought deal basis 26,923,077 common shares of the Company at a
purchase price of $2.60 per common share, for aggregate gross proceeds of $70
million (the "Offering"). The Underwriters will also have an option,
exercisable for a period of 30 days following the closing date of the
Offering, to purchase up to an additional 4,038,461 common shares for
additional gross proceeds of up to $10.5 million.
The Offering is scheduled to close on or about September 17, 2009 and is
subject to certain conditions including but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock Exchange and
the securities regulatory authorities.
The common shares to be issued under this offering will be offered by way
of a short form prospectus in British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario and Nova Scotia in Canada and in the United States on a
private placement basis pursuant to an exemption from the registration
requirements of the United States Securities Act of 1933, as amended.
The Company intends to use the net proceeds of the prospectus offering to
advance the Phase II expansion of the Mineral Park Project and for working
Mercator Minerals Ltd.
Mercator Minerals Ltd. is a TSX listed mining company with an experienced
management team that has brought the mill expansion at the Mineral Park Mine,
one of the largest and most modern copper-moly mining-milling operations in
North America to production in less than 2 years. Mercator management is
dedicated to maximizing profits by making its Mineral Park Mine one of the
lowest cost operations in the industry.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
The securities offered will not be and have not been registered under the
United States Securities Act of 1933, as amended, or the securities laws of
any state of the United States, and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements. This press release shall not constitute an offer to sell or
solicitation of an offer to buy the securities in any jurisdiction.
This press release contains certain forward-looking statements, which
include estimates, forecasts, and statements as to management's expectations
with respect to, among other things, the use of proceeds, the completion of
the transaction, the ability to obtain regulatory approval, the size and
quality of the Company's mineral reserves and mineral resources, future
production, capital and mine production costs, demand and market outlook for
commodities, and the financial results of the Company. These forward-looking
statements involve numerous assumptions, risks and uncertainties and actual
results may vary. Factors that may cause actual results to vary include, but
are not limited to, certain transactions, certain approvals, changes in
commodity and power prices, changes in interest and currency exchange rates,
inaccurate geological and metallurgical assumptions (including with respect to
the size, grade and recoverability of mineral reserves and resources),
unanticipated operational difficulties (including failure of plant, equipment
or processes to operate in accordance with specifications, cost escalation,
unavailability of materials and equipment, delays in the receipt of government
approvals, industrial disturbances or other job action, and unanticipated
events related to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or conditions in the
financial markets. These risks are described in more detail in the Annual
Information Form of the Company. The Company does not assume the obligation to
revise or update these forward-looking statements after the date of this
report or to revise them to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities laws. For a more
complete discussion, please refer to the Company's audited financial
statements and MD&A for the year ended December 31, 2008 on the SEDAR website
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
For further information:
For further information: Marc LeBlanc, VP Corporate Development and
Corporate Secretary, Tel: (604) 981-9661, Fax: (604) 960-9661, Email: