VANCOUVER, British Columbia, July 24, 2003 (PRIMEZONE) -- Miramar Mining Corporation (TSX:MAE)(AMEX:MNG) today announced that a Canadian broker on behalf of a syndicate of underwriters (collectively the "Underwriters") has agreed to purchase 14,300,000 Common Shares at a price of $2.10 per share for gross proceeds of $30,000,000. The Underwriters also have an option to purchase up to an additional 2,400,000 Common shares at the offering price to raise a further $5,000,000 exercisable up to 48 hours before the closing. Miramar plans to use the net proceeds of this financing to advance its Hope Bay project and for general corporate purposes.
"This financing allows us to continue to fund the exploration and development of the Hope Bay belt," said Tony Walsh Miramar's President & CEO. "With $18 million committed to exploration on Hope Bay in 2003, this financing replenishes our treasury and enables us to continue funding the project."
The common shares to be issued under this offering will be offered by way of short form prospectus to be filed in certain provinces in Canada pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and pursuant to an exemption from the registration requirements of the United States Securities Act of 1933.
The offering is scheduled to close on or about August 14, 2003 and is subject to certain conditions including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the American Stock Exchange.
In consideration for its services, the underwriters will receive a 5% cash commission and an agent's option to acquire shares in an amount equal to 5% of the number of common shares sold. The agent's option will be exercisable for 18 months at the issue price, subject to regulatory approval.
These securities have not been and will not be registered under the United States Securities Act of 1933 (the "US Securities Act"), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.
Miramar Mining Corporation has a 100% interest in virtually the entire 80km long Hope Bay Archean greenstone belt.
Forward Looking Statements
Statements relating to the completion of the contemplated financing and the operation of Miramar after completion of the transaction are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, the underwriters not completing the sale the securities, the failure to obtain any necessary regulatory or stock exchange approval or failure to satisfy conditions to the closing, and other risks and uncertainties, including those described in the Miramar's Annual Report on Form 40-F for the year ended December 31, 2002 and Reports on Form 6-K filed with the Securities and Exchange Commission.
This news release has been authorized by the undersigned on behalf of Miramar Mining Corporation.