Constellation Copper Corporation
TSX : CCU

Constellation Copper Corporation

August 02, 2006 16:16 ET

Constellation Copper Corporation Announces $20 Million Bought Deal

DENVER, COLORADO--(CCNMatthews - Aug. 2, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Constellation Copper Corporation (TSX: CCU) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. pursuant to which the underwriters have agreed to purchase 8,888,900 common shares on a bought deal basis, at a price of $2.25 per common share for aggregate gross proceeds to Constellation of $20 million. The underwriters have the option to purchase an additional 1,333,335 common shares at the issue price at any time prior to 30 days following the closing date for additional gross proceeds of $3 million. The Corporation will file a preliminary short form prospectus in all of the applicable provinces of Canada for the purpose of qualifying the common shares for distribution to the public as soon as possible and the offering is scheduled to close on or about August 29, 2006. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

The proceeds of the offering will be used to fund additional drilling and the acceleration of the resource/feasibility study on the San Javier copper discovery, purchase of the Terrazas Pilot Plant, expansion of the Lisbon Valley Leach Pad and associated bond and for general working capital purposes.

This press release is not an offer of the securities for sale in the United States. The securities being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. Any public offering of the securities to be made in the United States will be made by means of a prospectus that may be obtained from Constellation Copper Corporation or Sprott Securities Inc. and that will contain detailed information about Constellation Copper Corporation and its management, as well as financial statements. 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.

Contact Information

  • Constellation Copper Corporation
    Gregory A. Hahn
    President & CEO
    (720) 228-0055 or Toll Free: 1-877-370-5400
    or
    Constellation Copper Corporation
    Michelle Hebert
    Manager, Corporate Affairs
    (720) 228-0055 or Toll Free: 1-877-370-5400
    (303) 863-1736 (FAX)
    info@constellationcopper.com
    www.constellationcopper.com