Macarthur Minerals Limited
TSX VENTURE : MMS

Macarthur Minerals Limited

February 09, 2011 16:06 ET

Macarthur Minerals Announces $30 Million Bought Deal Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Macarthur Minerals Limited (the "Company" or "Macarthur Minerals") (TSX VENTURE:MMS) is pleased to announce that it has entered into a financing agreement pursuant to which a syndicate led by TD Securities Inc. (the "Underwriters") has offered to purchase, on a bought deal private placement basis, 8,350,000 units (the "Units") of the Company at a price of $3.60 per Unit (the "Issue Price") for total gross proceeds of $30,060,000 (the "Offering"). Macarthur Minerals has also granted the Underwriters an option to purchase up to an additional 1,670,000 Units, which is exercisable by the Underwriters at any time up to 2 business days prior to closing. If this option is fully exercised, total gross proceeds will be $36,072,000.

Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of $4.50 during the period ending 24 months following the closing of the Offering. In the event that the closing sale price of the Company's common shares on the TSX Venture Exchange is greater than $6.00 per share for a period of 20 consecutive trading days at any time after closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

The securities issued with respect to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.

The Underwriters will be entitled to a cash commission of 6% of the gross proceeds raised and non-transferable options to acquire Units in the amount equal to 6% of the number of Units issued for a period of 24 months from closing.

The closing of the Offering is expected to occur on or about February 24, 2011 and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange. The net proceeds from the Offering will be used to fund development of the Company's Lake Giles project in Western Australia and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

ABOUT MACARTHUR MINERALS LIMITED (TSX VENTURE:MMS)

Macarthur Minerals Limited is a Perth, Australia based resource development company currently focused on developing its Lake Giles Iron Ore project, located in the Yilgarn iron ore district in Western Australia. The Lake Giles project is located 110km from rail with direct access to the Port of Esperance, Western Australia. The project has a resource of 1.3 billion tonnes of Magnetite mineralization that has been reported in accordance with National Instrument 43-101, and 18 million tonnes of potential Direct Shipping Ore (DSO) Goethite/Hematite at 55.5% Fe. 

Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. The forward-looking statements reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. The term "ore" in DSO is not meant to imply economic viability has been established. Factors that could cause actual results to differ materially from those in forward-looking statements include unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore or magnetite and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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