European Minerals Corporation

European Minerals Corporation

March 21, 2006 10:09 ET

European Minerals Corporation Closes C$70 Million Financing

LONDON, UNITED KINGDOM--(CCNMatthews - March 21, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States

European Minerals Corporation ("EMC") (TSX:EPM)(AIM:EUM) is pleased to announce that it has closed its previously announced short form prospectus offering of 55,000,000 units. The offering was effected through an underwriting syndicate led by Canaccord Capital Corporation and including Pacific International Securities Inc. The underwriters' option was also exercised resulting in a total of 67,000,000 units being sold at C$1.05 per unit for gross proceeds of approximately C$70 million. Each unit consists of one common share of EMC and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of C$1.55 per share until March 21, 2011.

EMC has granted the underwriters a over-allotment option to purchase up to an additional 15% of the units sold under the offering including the underwriters option (for a total of up to 10,050,000 units) at the offering price. The over-allotment option is exercisable in whole or in part, at the sole discretion of Canaccord Adams until May 5, 2006. If exercised in full the gross proceeds of the offering will be approximately C$80 million.

EMC intends to use the net proceeds of the offering to bring its Varvarinskoye gold-copper mine in Kazakhstan into commercial production and for general working capital purposes.

The common shares and the warrants comprising the units are listed and posted for trading on the Toronto Stock Exchange ("TSX") under the symbols "EPM" and "EPM.WT.B" respectively. The TSX has also listed any common shares to be issued upon the exercise of the warrants. Application for the common shares comprising the units has been submitted to AIM and dealings in these shares are expected to commence tomorrow.

Contact Information

  • European Minerals Corporation - United Kingdom
    Investor Information: Tony Williams
    +44 (0) 20 7529 7508
    European Minerals Corporation - United Kingdom
    Bert Kennedy
    President & CEO
    +44 (0) 20 7529 7508
    Vanguard Shareholder Solutions Inc.
    Keith Schaefer
    1 (866) 448-0780