Caribou Resources Corp.

Caribou Resources Corp.

August 15, 2005 09:00 ET

Caribou Resources Corp. Announces $13.0 million Offering

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - Caribou Resources Corp., (TSX VENTURE:CBU), ("Caribou"), is pleased to announce that it has entered into an agreement with a syndicate led by Dundee Securities Corporation and including Acumen Capital Finance Partners Ltd, to offer for sale units and flow through shares totaling $13,000,000.

The offering will consist of 3,278,690 million common shares on a flow-through basis (1,639,345 on a guaranteed agency basis and 1,639,345 on a best efforts basis) at a price of $3.05 per share for proceeds of approximately $10,000,000. These flow-through shares will entitle subscribers to receive $3.05 per share of qualifying expenditures renounced for Caribou's 2005 taxation year.

The balance of the offering will comprise of 1,224,491 units (816,327 on a guaranteed agency basis and 408,164 on a best efforts basis) at a price per unit of $2.45. Each unit will comprise one common share and one-half of one common share purchase warrant where each full warrant entitles the holder thereof to acquire an additional common share at an exercise price of $3.00 at any time prior to one year after closing of the offering.

Closing of the offering is expected to occur on or about September 8, 2005, subject to normal regulatory approvals.

Caribou has granted the syndicate an option to sell 327,869 additional flow-through shares and 408,164 units for proceeds of $1,000,000 and $1,000,000 respectively. If the option is fully exercised, the total size of the offering shall be up to $15,000,000.

The flow-through shares and units will be sold via private placement pursuant to applicable securities law exemptions.

The syndicate will receive a commission of 6 per cent of the gross proceeds.

Caribou intends to use the proceeds from the offering to reduce debt and finance its continuing 2005 Capex program and 2006 exploration and development program.

This news release may contain forward looking statements. Actual results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Caribou Resources Corp.
    Christina M. Fehr
    Vice Chairman & CEO
    (403) 539-4322
    Caribou Resources Corp.
    Ross Robertson
    President & COO
    (403) 539-4316
    Caribou Resources Corp.
    Suite 1545, 101 - 6th Ave SW
    Calgary Alberta T2P 3P4