Scorpio Mining Corporation

Scorpio Mining Corporation

November 01, 2007 08:30 ET

Scorpio Mining Announces Closing of $22 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2007) -


Scorpio Mining Corporation (TSX:SPM) (the "Company") is pleased to announce that it has closed its previously announced private placement (the "Offering") consisting of 15,715,000 units (the "Units") at an offering price of $1.40 per Unit for aggregate gross proceeds of $22,001,000. Each Unit consists of one common share of the Company (a "Common Share") and one quarter of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire an additional Common Share at any time up to 4:30 p.m. (Vancouver time) on November 1, 2010 at a price of $1.85 per Common Share. The Units were offered for sale, on a reasonable best efforts basis, by a syndicate of agents led by CIBC World Markets Inc. and including Blackmont Capital Inc. (the "Agents").

Net proceeds from the Offering will be used to finance further development and exploration of the Company's Nuestra Senora silver project in Sinaloa State, Mexico, and for general corporate purposes, including working capital.

The Agents received a cash commission equal to 7% of the gross proceeds raised from the Offering as well as compensation options (the "Compensation Options") to acquire 1,100,050 Common Shares at any time up to 4:30 p.m. (Vancouver time) on November 1, 2010 at a price of $1.49 per Common Share.

The Common Shares and Warrants comprising the Units and any additional Common Shares issued upon exercise of the Warrants and Compensation Options will be subject to a four-month hold period from closing under applicable securities laws. The Common Shares comprising the Units have been listed for trading on the Toronto Stock Exchange ("TSX"). The TSX has also agreed to list any Common Shares to be issued upon the exercise of the Warrants and the Compensation Options.

Scorpio Mining Corporation is a TSX-listed silver exploration and development company with a primary focus on the exploration and development of its 100% owned Nuestra Senora project. Nuestra Senora is a poly-metallic silver-zinc-lead-copper deposit located in the Cosala Mining District in the state of Sinaloa, Mexico. The project is scheduled for commercial production in the second quarter of 2008.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.


Peter J. Hawley, Chairman & CEO

This discussion includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future commencement of commercial production, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements, including, among others, use of proceeds and scheduled production at the Nuestra Senora project. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Contact Information

  • Jackson Little Holdings Ltd.
    (604) 930-4375 or 1-888-930-4375