FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

April 15, 2009 09:27 ET

FNX Announces $15 Million Flow Through Financing

TORONTO, ONTARIO--(Marketwire - April 15, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

FNX Mining Company Inc. ("FNX" or "the Company")(TSX:FNX) is pleased to announce that it has engaged Primary Capital Inc. to issue and sell on a private placement basis up to 2,173,914 flow-through common shares of the Company at a price of $6.90 per share for gross proceeds of $15 million (the "Offering"), of which $10 million is being raised on a guaranteed basis and $5 million is being raised on a best efforts agency basis.

Terry MacGibbon, Chairman and CEO of FNX noted that, "Because of our 2009 cash conservation and cost reduction programs, the Company's exploration activity on our Sudbury properties was severely curtailed this year. Exploration has been one of the Company's greatest value added and growth drivers with our proven exploration team enjoying a very impressive record of mineral discoveries. This flow through financing will allow our exploration team to dramatically increase its exploration activity while not depleting the Company's cash position. The funds will primarily be used for exploration on our non-producing properties in Sudbury that contain untested exploration targets that warrant detailed work. The Company will continue to minimize its capital and operating expenditures while focusing on achieving its 2009 operating plans and developing the Levack Footwall Deposit for production startup in 2010."

Closing of the Offering is anticipated to occur on or before April 28, 2009 and is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange. The shares issued in the Offering will be subject to resale restrictions for a period of four months plus one day from the closing date.

Cautionary Note:

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the proposed terms of the financing, proposed use of proceeds, proposed exploration and development programs, receipt of government approvals, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, financial market risks, and those other factors described in the annual information form of the Company. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    Chairman and Chief Executive Officer
    416-628-5929
    or
    FNX Mining Company Inc.
    David Constable
    Vice President Investor Relations
    416-628-5929
    Email: info@fnxmining.com
    Website: www.fnxmining.com