| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is pleased to announce that it has filed a preliminary short form prospectus with the securities regulatory authorities in British Columbia, Alberta and Ontario, in connection with a best efforts agency marketed offering of units ("Units") of the Corporation (the "Offering") for up to $20 million.
Each Unit will consist of one common share ("Common Share") of the Corporation and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire a Common Share for a period of 24 months from the date of issue. The price per Unit and the number of Units available for sale pursuant to the Offering, as well as the exercise price of the Warrants, will be determined in the context of the market prior to the time of filing of the final short form prospectus. The Units will be offered in the provinces of British Columbia, Alberta and Ontario pursuant to a short form prospectus, as well as in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act").
The Offering will be led by Paradigm Capital Inc. and a syndicate of agents including Clarus Securities Inc., Haywood Securities Inc., Roth Capital Partners, LLC, National Bank Financial Inc. and Toll Cross Securities Inc. (collectively, the "Agents"). The Agents will be granted an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part, to acquire up to an additional 15% of the Units sold in the Offering for a period of 30 days following closing of the Offering.
"The successful completion of the Offering, along with the transactions contemplated by our recently announced term sheet with Red Kite, if completed, and the potential proceeds from the US$70 million loan facility proposed in our indicative term sheet with Credit Suisse, signed earlier this year, should substantially satisfy our current estimates for our pre-production capital requirements," said Mr. Alan Edwards, Oracle Mining's Chief Executive Officer.
"We believe, given the quality of the Oracle Ridge Copper Mine project, the respectful and expedited approach to permitting and the strength of the operations team, Oracle Mining has the ability to meet its current estimated timeline to production by the end of 2013."
Oracle Mining expects to raise aggregate gross proceeds of up to $20 million pursuant to the Offering assuming that the Over-Allotment Option is not exercised, and up to $23 million if the Over-Allotment Option is fully exercised. Oracle Mining intends to use the net proceeds from the Offering towards its surface drill program, the completion of a Feasibility Study and NI 43-101-compliant reserve and resource study, for certain property payments and land transactions, permitting and other preliminary capital expenditures at the Corporation's Oracle Ridge Copper Mine in Arizona, USA, and for working capital and general corporate purposes.
The Offering is expected to close on or about October 16, 2012 and is subject to customary conditions, including completion of satisfactory due diligence by the Agents, the execution of a definitive agency agreement with the Agents and the receipt of all necessary regulatory and stock exchange approvals, including listing approval from the Toronto Stock Exchange (the "TSX") for the Common Shares issuable pursuant to the Offering. Successful listing of the Common Shares will be subject to Oracle Mining fulfilling all of the listing requirements of the TSX.
About Oracle Mining Corp.
Oracle Mining Corp. (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining LLC and the Oracle Ridge Copper Mine located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.
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