VANCOUVER, BRITISH COLUMBIA, Dec. 13, 2010 (Marketwire) --Minefinders Corporation Ltd. (TSX:MFL)(NYSE Amex:MFN) ("Minefinders" orthe "Company") has announced today that it has entered into an agreementwith a syndicate of underwriters under which the underwriters haveagreed to purchase on a bought deal basis by way of a supplement to theCompany's short form base shelf prospectus filed in Canada and the baseshelf prospectus in the Company's Form F-10 registration statement filedin the U.S., 13,650,000 common shares (the "Common Shares") at a priceof C$11.10 per Common Share for gross proceeds of C$151,515,000 (the"Offering").
Minefinders has also granted the underwriters anover-allotment option, exercisable in whole or in part for a period of30 days after Closing, to purchase up to an additional 2,047,500 CommonShares at the Offering price per share.
The Offering will be ledby Scotia Capital Inc. and BMO Capital Markets. The Offering isexpected to close on or about December 20, 2010 and is subject toregulatory and stock exchange approvals.
The net proceeds of theOffering will be used for future expansion and mill construction at theDolores mine, continued development of La Bolsa property, future debtrepayments and general corporate purposes.
The Company has filedand received a receipt for a final base shelf prospectus (the "FinalProspectus") with the securities regulators in all provinces of Canada(except Quebec) and a registration statement on Form F-10 relating tothese securities has been filed and brought effective with the UnitedStates Securities and Exchange Commission. Supplements to the FinalProspectus setting out the details of the Offering will also be filedwith the securities regulators in all provinces of Canada (exceptQuebec) and with the United States Securities and Exchange Commissionand delivered to all potential purchasers.
A copy of theprospectus included in the U.S. registration statement can be obtainedupon request by contacting Investor Relations at the contact informationbelow or electronically at www.sec.gov. A copy of the short form baseshelf prospectus is available electronically at www.sedar.com.
About Minefinders
Minefindersis a precious metals mining and exploration company and operates themulti-million ounce Dolores gold and silver mine in Mexico.
Forward Looking Statements
Thisrelease contains certain "forward-looking statements" and"forward-looking information" as defined under applicable Canadian andU.S. securities laws. Forward-looking statements generally can beidentified by the use of forward-looking terminology such as "may","will", "expect", "intend", "estimate", "anticipate", "believe","continue" or similar terminology. Minefinders and its securities may besubject to important risk factors and uncertainties, both known andunknown, many of which are beyond Minefinders' ability to control orpredict. Those factors are described or referred to under the heading"Risk Factors" in Minefinders' Annual Information Form for the yearended December 31, 2009 and under the heading "Risks and Uncertainties"in Minefinders' Management's Discussion and Analysis for the quarterended September 30, 2010, both of which are available on SEDAR atwww.sedar.com. Although Minefinders has attempted to identify importantfactors that could cause actual actions, events or results to differmaterially from those described in forward-looking statements, there maybe other factors that cause actions, events or results not to be asanticipated, estimated or intended. There can be no assurance thatforward-looking statements will prove to be accurate, as actual resultsand future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking statements. Minefinders does not undertake to update anyforward looking statements that are incorporated by reference, exceptin accordance with applicable securities laws.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.
Minefinders Corporation Ltd.Director of Corporate Communications(866) 687-6263, or (604) 687-6263Minefinders Corporation Ltd.Investors Relations Representative(866) 687-6263, or (604) 687-6263