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Cumberland arranges $25-million unit financing
Cumberland Resources Ltd CBD
Shares issued 39,543,683 Jul 14 close $3.35
Tue 15 Jul 2003 News Release
Mr. Kerry Curtis reports
$25 MILLION FINANCING ARRANGED
Cumberland Resources, subject to regulatory approval, has entered into an agreement with a group of underwriters led by Canaccord Capital Corp. and Dundee Securities Corp. collectively, pursuant to which the underwriters have agreed: (a) to purchase (with the right to substitute purchasers) from the company seven million units at a price of $3.10 per unit on a bought-deal basis; and (b) to sell on behalf of the company on a best-efforts guaranteed agency basis one million flow-through common shares (with the obligation to purchase any flow-through common shares not otherwise sold) at a price of $3.30 per flow-through common share; for total gross proceeds to the company of $25-million. The underwriters will have the option until the closing of the financing to increase the size of the underwritten financing by up to three million units for additional gross proceeds to the company of up to $9.3-million. The financing is expected to close on July 29, 2003. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to purchase one additional common share of the company at a price of $3.75 per common share for a period of 12 months from the closing date provided that, in the event that the closing price of the company's common shares equals or exceeds $4.25 during any twenty consecutive trading day period between the date that is four months following the closing and eight months following the closing, the warrants will expire nine months after the closing date. The underwriters will receive a cash commission equal to 5.0 per cent of the gross proceeds raised from the sale of the units and flow-through common shares, including any units issued pursuant to the exercise of the option, together with broker warrants exercisable for a period of expire 12 months from the closing date to purchase such number of common shares of the company as is equal to 5 per cent of the total number of units and flow-through common shares sold at an exercise price of $3.10 per common share. The net proceeds from the underwritten financing will be used to advance the company's Meadowbank gold project and for general working capital purposes. The gross proceeds of the flow-through common share financing will be used for the exploration of the company's Meadowbank gold project and its other Canadian exploration projects.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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