Anatolia Minerals Development Limited
TSX : ANO

Anatolia Minerals Development Limited

October 18, 2005 08:08 ET

Anatolia Announces C$12.0 Million Bought Deal Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 18, 2005) -

Private placement offering of 6.3 million units at C$1.90 per unit, consisting of one common share and one-half common share purchase warrant at C$2.65 for 24 months; option for additional 1.6 million units on same terms.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Anatolia Minerals Development Limited (the "Company")(TSX:ANO) confirms an agreement with a syndicate of underwriters led by Desjardins Securities Inc. and including Dundee Securities Corporation and National Bank Financial Inc. to raise $12,000,020 on a bought deal basis consisting of a private placement of 6,315,800 Units at a price of $1.90 per Unit. The Underwriters have also been granted an option, until 24 hours prior to closing, to place up to an additional 1,579,000 Units at a price of $1.90 per Unit for further gross proceeds of $3,000,100, which would increase the offering to $15,000,120.

Closing of the transaction is expected to occur on or about November 3, 2005 and is subject to normal regulatory approvals. The net proceeds of the Offering will be used to fund the final feasibility study and initial development capital expenditures for the Copler Gold Project in Turkey as well as for general working capital purposes.

Each Unit consisting of one common share and one half of a share purchase warrant. Each whole share purchase warrant shall allow the holder to purchase at any time for a period of 24 months from Closing one common share of the Company at an exercise price of $2.65 per common share. The common share purchase warrants are subject to an accelerated expiry if, at any time the published closing trade price of the common shares on the TSX is greater than or equal to $5.30 for any 10 consecutive trading days, in which event the holder will be given notice that the common share purchase warrants will expire 30 days following the date of such notice. The share purchase warrants may be exercised by the holder during the 30 day period between the notice and the expiration of the common share purchase warrants.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Anatolia Minerals Development Limited

Anatolia has been engaged in minerals exploration in Turkey since 1996. In January 2004, Anatolia increased to 100% its interest in the 4-million ounce inferred gold resource at Copler. Anatolia recently upgraded 3.8 million ounces to the measured and indicated categories and outlined an additional 1.6 million ounce inferred resource. Anatolia is advancing work at Copler to achieve a production decision by first quarter 2006 for an open pit gold operation for the shallow leachable oxide portion of Copler. The Company also controls approximately 1.1 million hectares within Turkey, including four properties currently under joint exploration with Rio Tinto. The Rio Tinto agreement continues through 2007 and requires payment by Rio Tinto of expenditures for grassroots programs, specific prospect costs in which Rio Tinto is participating, and portions of Anatolia's Turkish field office expenses. ANO currently has 49.6 million common shares issued and outstanding, 57.8 million fully diluted. Anatolia trades on the Toronto Stock Exchange as ANO.

This news release may contain forward-looking statements in respect of various matters including upcoming work programs and events. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Anatolia disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • About Anatolia Minerals Development Limited
    Richard C. Moores
    President
    (303) 670-9945
    (303) 670-9947 (FAX)
    or
    About Anatolia Minerals Development Limited
    Douglas Tobler
    Chief Financial Officer
    (303) 292-1299
    (303) 297-0538 (FAX)
    www.anatolia-minerals.com