Mukuba Resources Limited

Mukuba Resources Limited

November 03, 2009 14:21 ET

Mukuba Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2009) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Mukuba Resources Limited ("Mukuba" or the "Company") is pleased to announce that it has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with the Company's initial public offering (the "Offering") of units (the "Units"). Each Unit is expected to consist of one common share of the Company and one-half of one common share purchase warrant, each whole common share purchase warrant (the "Warrants") entitling the holder to acquire one additional common share of the Company. The number of Units to be offered, the price per Unit and the exercise price and term of the Warrants will be determined in the context of the market, prior to the filing of the final prospectus. The Offering is being made through a syndicate of agents led by GMP Securities L.P., and Canaccord Capital Corporation (collectively, the "Agents"). The Company intends to raise gross proceeds of a minimum of $5,000,000 and a maximum of $10,000,000 pursuant to the Offering. In addition, Mukuba will grant to the Agents an over-allotment option to purchase up to that number of additional Units equal to 15% of the number of Units sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering.

The Company intends to use the net proceeds from this Offering to continue exploration and development work at its Zambian copper project known as the Northcore Project, complete geophysics and drilling at the Northcore Project, and for general corporate purposes. The closing of the Offering is expected to take place on December 2, 2009, or such other date as the Company and the Agents agree.

A copy of the preliminary prospectus can be viewed on SEDAR (http://www.sedar.com).

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States or to United States persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. Accordingly, this news release does not constitute an offer for sale of securities in the United States.

About the Company

Mukuba is a mining company focused on the exploration and development of two "greenfield" exploration projects known separately as the Northcore Project, of which the Company holds a 100% interest, and the Lunga Project, which, pursuant to an option agreement, the Company may earn up to an 80% interest, each located in the central African copperbelt region of northern Zambia. The Company's principal activities include mineral exploration and development with a view to advancing its projects to the mineral production stage.

Forward-looking Information

Certain information contained in this press release constitutes "forward-looking information", which is information regarding possible events that is based upon assumptions about future economic conditions and courses of action. All information other than matters of historical fact may be forward-looking information. In some cases, forward-looking information can be identified by the use of words such as "expect", and "intend" and similar words or phrases suggesting future outcomes or events. Forward-looking information in this press release includes, but is not limited to, information concerning details of the public offering, including the Company's anticipated use of the proceeds.

By its nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, to differ materially from those expressed or implied by such forward-looking information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: the possibility that the public offering will not be completed as contemplated, or at all, because the necessary regulatory approvals are not received or other conditions to completion of the offering are not satisfied, and the possibility that the Company will have to allocate proceeds to other uses or reallocate proceeds differently among the anticipated uses due to changes in project parameters or other unforeseen circumstances associated generally with the unpredictability of exploration and development activities. Although we have attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking information, readers are cautioned that this list is not exhaustive and there may be other factors that we have not identified. Readers are cautioned not to place undue reliance on forward-looking information contained in this release. Forward-looking information is based upon our beliefs, estimates and opinions as at the date of this release, which we believe are reasonable, but no assurance can be given that these will prove to be correct. Furthermore, we undertake no obligation to update or revise forward-looking information if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law. All forward-looking information contained in this release is expressly qualified by this cautionary note.

Contact Information

  • Mukuba Resources Limited
    Trevor Richardson
    President and Chief Executive Officer
    (416) 918-2242
    www.mukubaresources.com