Cumberland Resources Ltd.

Cumberland Resources Ltd.

November 02, 2006 15:43 ET

Cumberland Resources Ltd.-New Issue

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Cumberland Resources Ltd. ("Cumberland") (TSX:CLG) has today entered into an agreement for a bought deal financing with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. Cumberland will issue 16,100,000 Common Shares (the "Offered Shares") at a price of C$5.40 per Common Share for gross proceeds of C$86,940,000. The Underwriters have been granted an over-allotment option, exercisable up to 30 days following closing, to purchase an additional 2,415,000 Common Shares.

The Offered Shares to be issued under the offering will be offered by way of a short-form prospectus in Canada and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. Closing is expected on or about November 24, 2006 and 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 net proceeds of the offering will be used for development of the Meadowbank gold project in Nunavut and for general corporate purposes.

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.

Contact Information

  • Cumberland Resources Ltd.
    Kerry M. Curtis
    President and CEO
    (604) 608-2557