FNX Mining Company Inc.
AMEX : FNX
TSX : FNX

FNX Mining Company Inc.

November 17, 2005 12:27 ET

FNX Mining Company Inc. Announces Filing of Final Prospectus for $102 Million 'Bought Deal' Financing

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

FNX Mining Company Inc. (TSX:FNX)(AMEX:FNX) ("FNX") announced today that is has filed a final short form prospectus qualifying the distribution of 7.5 million common shares of FNX in each of the provinces of Canada, at a price of $13.60 per common share for aggregate gross proceeds of $102 million.

The offering is being underwritten on a "bought deal" basis by a syndicate of underwriters co-led by GMP Securities Ltd. and BMO Nesbitt Burns Inc. The underwriters have been granted an over-allotment option to purchase up to an additional 2.5 million shares at a price of $13.60 per common share on the closing date. If the option is exercised, the aggregate gross proceeds of the offering will be $136 million. FNX plans to use the net proceeds of the offering for the development of its Sudbury properties and for general working capital purposes.

The common shares to be sold under the offering will be offered by way of a short form prospectus in each province of Canada where purchasers reside and will be offered 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.

The offering is expected to close on November 28, 2005, subject to receipt of all necessary approvals.

Refiling of Business Acquisition Report

FNX also announced the refiling of its business acquisition report in respect of FNX's recent acquisition from Dynatec Corporation of Dynatec's 25% interest in their Sudbury joint venture and Dynatec's 50% indirect interest in Aurora Platinum Corp. The refiling resulted from a review by the Ontario Securities Commission of the pro forma consolidated financial statements included in the business acquisition report and reflects a change made to a note to the financial statements allocating the purchase price paid under the acquisition between the interest in the joint venture and the interest in Aurora. Miscellaneous revisions have also been made to certain notes to the pro forma 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. The securities 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 absent registration or an applicable exemption from registration requirements.

For further information, please contact: FNX Website - www.fnxmining.com

Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    President and CEO
    (416) 628-5922
    (416) 360-0550 (FAX)
    tmacgibbon@fnxmining.com
    or
    FNX Mining Company Inc.
    Ronald P. Gagel
    Vice President and CFO
    (416) 368-0990
    (416) 360-0550 (FAX)
    rgagel@fnxmining.com