Minefinders Corporation Ltd.
TSX : MFL
AMEX : MFN

Minefinders Corporation Ltd.

October 18, 2006 07:03 ET

Minefinders Announces Intent to Offer Senior Convertible Notes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) - Minefinders Corporation Ltd. (the "Company") (TSX:MFL)(AMEX:MFN) today announced its intention to offer and sell US$75 million aggregate principal amount of its Senior Convertible Notes due 2011 ("Convertible Notes") to certain qualified institutional buyers pursuant to Rule 144A under U.S. Securities Act of 1933 (the "1933 Act"), subject to market and other conditions, including approval of the Toronto Stock Exchange and the American Stock Exchange.

The Company expects to grant the initial purchaser an over-allotment option to purchase up to an additional US$10 million principal amount of the Convertible Notes. The Convertible Notes will have a semi-annual cash interest coupon to be determined at pricing, and will be convertible into the Company's Common Shares, subject to satisfaction of certain conditions, at a conversion price to be determined. The Company intends to use the net proceeds of the offering, together with cash on hand, primarily for the construction, start-up, and operation of its proposed Dolores gold and silver mine in Mexico.

Although the secured project debt facility announced by the Company on December 19, 2005 remains a viable option, the Company decided to pursue the Convertible Notes offering based upon considerations such as interest rate, absence of requirements to forward sell future production, and other factors considered by the Company.

This announcement does not constitute an offer to sell, nor is it a solicitation of an offer to buy, securities. Any offers of the securities will be made only by means of a private offering memorandum. The Convertible Notes, and the Common Shares issuable upon conversion of the Convertible Notes, have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration under, or an applicable exemption from, the registration requirements of the Securities Act. None of these securities are being offered or sold in Canada, or to Canadian purchasers, or to any person who is purchasing for resale to, or for account of, any person resident in Canada.

Mark H. Bailey, President and Chief Executive Officer

This news release contains forward-looking statements regarding the Company, its financing arrangements, its planned use of proceeds, and other matters, including the Company's expectations that the offering will be successfully completed consistent with the terms outlined above. Actual results and developments may differ materially from those contemplated by these statements depending on, among other factors, the satisfaction of customary closing conditions, which may be affected by market conditions and global political developments.

Contact Information

  • Minefinders Corporation Ltd.
    Mark H. Bailey
    President and Chief Executive Officer
    (604) 687-6263 or Toll Free: 1-866-687-6263
    (604) 687-6267 (FAX)
    Website: www.minefinders.com