RE: Moneta Bought Deal! entire NR Dear Shareholders,
Appended below (with active links to our website), please find a press release from Moneta Porcupine Mines Inc. ("Moneta") disseminated today, March 16, 2012.
Moneta has agreed to the underwriters' request to amend the terms of the bought deal financing previously announced on February 23, 2012.
We view the amended terms as a pragmatic response to the sudden market malaise in the gold sector. Several bought deal financings across the peer group remain hung, have been amended or altogether terminated in the last several weeks. I refer you to the article in the Globe and Mail today discussing that "Bought Deals are Amended Too Often".
We are pleased to confirm that the downsizing in the deal amount has no significant impact on our 2012 exploration program objectives currently underway. We are also pleased to report that there were no issues with due diligence which was successfully completed on this, our first brokered financing in recent past.
Do not hesitate to contact me with any questions.
Ian C. Peres, CA
President & CEO
Tel. 416.579.3040 (Toronto)
Tel. 705.264.2296 (Timmins)
Friday, March 16, 2012
Moneta Amends Bought Deal Financing
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
March 16, 2012, Timmins, Ontario - Moneta Porcupine Mines Inc. (TSX:ME)(OTC:MPUCF)(XETRA:MOP) (the "Company") announces that it has amended the terms of the previously announced bought deal financing (Press Release February 23, 2012).
Moneta has agreed to amend the February 23, 2012 agreement with the syndicate of underwriters (the "Underwriters"), led by Stonecap Securities Inc., whereby the Underwriters have now agreed to purchase, on a bought deal basis, 10,000,000 common shares (the "Common Shares") from treasury of the Company at a purchase price (the "Issue Price") of
.30 per Common Share for gross proceeds of $3,000,000 (the "Offering"), previously
.35 per Common Share for gross proceeds of $5,000,000. The Company also grants the Underwriters an option to purchase up to an additional 1,667,000 Common Shares at the Issue Price exercisable up to 48 hours prior to closing of the Offering for additional gross proceeds of up to $500,100.
The net proceeds of the Offering will be used for exploration at the Company's Golden Highway project, working capital and general corporate purposes.
The Offering will be made by way of private placement to accredited investors in all provinces of Canada. The Offering is expected to close on or about March 27, 2012, 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 relevant securities regulatory authorities. The Common Shares will be subject to a four-month hold period.
About Moneta
Moneta holds a 100% interest in 5 core projects strategically located along the Destor Porcupine Fault Zone in the world class Timmins Camp with excellent infrastructure including access roads, water, electricity, and mills. The land position is one of the largest - after three gold producers - including the highly prospective Golden Highway Project which contains an Indicated resource of 1.07 million ounces gold (NI 43-101) and an Inferred resource of 2.07 million ounces gold (NI 43-101) and covers 12 kilometers of a volcanic/sedimentary belt along the Destor Porcupine Fault Zone, similar to that which has hosted the bulk of the 75 million ounces mined to date in the Timmins Camp.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Ian C. Peres, President & CEO
416-579-3040 (Toronto)
705-264-2296 (Timmins)
iperes@monetaporcupine.com
Moneta's public documents may be accessed at www.sedar.com. For further information on Moneta, please visit our website at www.monetaporcupine.com or email us at info@monetaporcupine.com.
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