Caribou Resources Corp.

Caribou Resources Corp.

August 15, 2005 18:37 ET

Caribou Resources Corp. Offering Oversubscribed

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - Caribou Resources Corp., (TSX VENTURE:CBU), ("Caribou"), is pleased to announce that it has increased the amount of its previously announced equity financing (the "Offering") led by Dundee Securities Corporation and including Acumen Capital Finance Partners Ltd.

As a result of strong demand, Caribou has agreed to increase the subscription offering up to $18,000,000. The Offering which is subject to regulatory approval, is expected to close on September 8th, 2005.

The revised Offering will now consist of 3,158,690 million common shares on a flow through basis (1,639,345 on a guaranteed agency basis and 1,519,345 on a best efforts basis) at a price of $3.05 per share for proceeds of approximately $9,634,004. The balance of the offering will now be comprised of 2,601,036 units (816,327 units on a guaranteed agency basis and 1,784,709 units on a best efforts basis) for gross proceeds of approximately $6,372,538. 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.

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 approximately $18,000,000.

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 the 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