Great Panther Resources Limited

Great Panther Resources Limited

October 27, 2009 08:00 ET

Great Panther Announces $10 Million Equity Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2009) -


GREAT PANTHER RESOURCES LIMITED (TSX:GPR) (the "Company") announced today that it has filed a preliminary short form prospectus in Canada in connection with an agency offering of units ("Units") to raise up to Cdn$10 million (the "Offering").

Each Unit will consist of one common share and one-half of one common share purchase warrant, each whole warrant exercisable to purchase one common share for a term of two years from the closing date. The offering price will be determined before the filing of the final short form prospectus.

The Offering will be conducted through a syndicate of agents led by Salman Partners Inc. and Dundee Securities Corporation and including Fraser Mackenzie Limited (together "the Agents").

The Company has agreed to grant the Agents an over-allotment option to purchase up to that number of additional Units of Great Panther equal to 15% of the Units sold pursuant to the Offering, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering (the "Over-Allotment Option"). If the Over-Allotment Option is exercised in full, the total gross proceeds to Great Panther will be approximately Cdn$11,500,000.

The Company intends to use the net proceeds of the Offering to accelerate exploration drilling, mine development, the acquisition of new underground equipment, mine infrastructure refurbishment including power distribution at Guanajuato and plant equipment replacement and upgrades at both Topia and Guanajuato, and for general working capital purposes.

The Agents will be paid a cash commission of 6% of the gross proceeds from the Offering including proceeds realized from the exercise by the Agents of the Over-Allotment Option, if any. The Agents will also be granted broker warrants equal in number to 6% of the number of Units sold pursuant to the Offering. Each broker warrant will be exercisable to purchase one common share of the Company for a period of two years following the closing date. The common shares will be offered publicly in the provinces of Canada other than Quebec, in Europe and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and internationally, pursuant to available exemptions.

Closing of this offering is expected to occur on or about November 17, 2009 and is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

This news release is not an offer of securities for sale in the United States. The securities described above have not been and will not be registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, or an applicable exemption from the registration requirements thereof.

Great Panther's strategy is to be a growing and profitable silver mining company by increasing its low cost silver production and silver resources. The Company has two 100% owned operating mines in Mexico.


Robert A. Archer, President & CEO

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parametres as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2008 and reports on Form 6-K filed with the Securities and Exchange Commission and available at and Material Change Reports filed with the Canadian Securities Administrators and available at

SEC 20-F Statement Filed; Standard & Poor's Listed

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