Extorre Gold Mines Limited : Extorre Gold Mines Announces CAD$50 Million Bought Deal Equity Financing
VANCOUVER, BC -- (Marketwire) -- 01/31/12 --
Immediate Release: NR 12-01
Extorre Gold Mines Limited (AMEX: XG; TSX: XG; Frankfurt: E1R, 'Extorre' or the 'Company') is pleased to
announce
it has entered into an agreement with a syndicate of underwriters
(the
'Underwriters'), pursuant to which the Underwriters have agreed to
purchase, on
a bought deal basis, pursuant to a Canadian short form prospectus,
5,300,000
common shares (the 'Common Shares') of the Company at a price of
CAD$9.45 per
share for gross proceeds of CAD$50,085,000 (the 'Underwritten
Offering'). In
addition, the Company will grant the Underwriters an
over-allotment option,
exercisable prior to the closing of the Underwritten Offering, to purchase
from
the Company up to an additional 795,000 common shares at CAD$9.45 per
share to
raise additional gross proceeds of up to CAD$7,512,750 (the '
Over-Allotment
Option', and together with the Underwritten Offering, the 'Offering').
In connection with this Offering the Underwriters will receive a cash
commission
of 5% of the gross proceeds raised.
The net proceeds from the Underwritten Offering will be used for
exploration and
development of the Company's mineral projects in Argentina and for
general
working capital purposes.
Closing of the Underwritten Offering is anticipated to occur on or
before
February 22, 2012 and is subject to certain conditions including,
but not
limited to, the completion of satisfactory due diligence by the
Underwriters and
the receipt of applicable regulatory approvals including approval of the
Toronto
Stock Exchange and the NYSE Amex.
This news release does not constitute an offer to sell or a solicitation
of an
offer to buy any of the Common Shares in the United States. The Common
Shares
have not been and will not be registered under the United States
Securities Act
of 1933, as amended, or any state securities laws and may not be offered or
sold
within the United States unless an exemption from such registration
requirements
is available.
EXTORRE GOLD MINES LIMITED
Eric Roth
President and CEO
Safe Harbour Statement - This news release contains '
forward-looking
information' and '
forward-looking statements' (together, the '
forward-looking
statements') within the meaning of applicable securities laws and the
United
States Private Securities Litigation Reform Act of 1995, including but not
limited to the expected closing date of the offering and the anticipated
use of
proceeds. . These
forward-looking statements are made as of the date of this
news release. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the future
circumstances,
outcomes or results anticipated in or implied by such
forward-looking statements
will occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have based these
forward-looking statements on our expectations about future events as at
the date that
such statements were prepared, the statements are not a guarantee that such
future events will occur and are subject to risks, uncertainties,
assumptions
and other factors which could cause events or outcomes to differ materially
from
those expressed or implied by such
forward-looking statements. Such factors and
assumptions include, among others, the effects of general economic
conditions,
the price of gold and silver, changes in market conditions, changing
conditions
on the Company's properties or in management's assumptions leading to a
change
in the use of proceeds and misjudgments in the course of preparing
forward-looking information. In addition, there are known and unknown risk
factors which
could cause our actual results, performance or achievements to differ
materially
from any future results, performance or achievements expressed or implied
by the
forward-looking statements. Known risk factors include risks associated
with
project development; the need for additional financing; operational risks
associated with mining and mineral processing; fluctuations in metal
prices;
title matters; uncertainties and risks related to carrying on business in
foreign countries; environmental liability claims and insurance; reliance
on key
personnel; the potential for conflicts of interest among certain of our
officers, directors or promoters of with certain other projects; the
absence of
dividends; currency fluctuations; competition; dilution; the volatility of
the
our common share price and volume; tax consequences to U.S. investors; and
other
risks and uncertainties, including those relating to the Cerro Moro project
and
general risks associated with the mineral exploration and development
industry
described in the Company's Annual Information Form for the fiscal period
ended
December 31, 2010, dated March 25, 2011 filed with the Canadian Securities
Administrators and available at www.sedar.com and filed with the United
States
Securities Exchange Commission in our annual report on Form 40-F and
available
at www.sec.gov. Although we have attempted to identify important factors
that
could cause actual actions, events or results to differ materially from
those
described in forward-looking statements, there may be other factors that
cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those
anticipated in such statements. Accordingly, readers should not place undue
reliance on
forward-looking statements. We are under no obligation to update or
alter any
forward-looking statements except as required under applicable
securities laws.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED
IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY
OF THIS NEWS RELEASE
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
[HUG#1581245]
For further information, please contact:
Rob Grey
VP Corporate Communications
Tel: 604.681.9512
Fax: 604.688.9532
Toll-free: 1.888.688.9512