Polaris Minerals Corporation
TSX : PLS

Polaris Minerals Corporation

February 22, 2007 08:06 ET

Polaris Announces $54 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 22, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Polaris Minerals Corporation ("Polaris" or the "Company") (TSX:PLS) today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Canaccord Capital Corporation, CIBC World Markets Inc., Orion Securities Inc., TD Securities Inc. and Wellington West Capital Markets Inc., on a bought deal basis, to issue and sell 6 million common shares at a price of $9.00 per share for gross proceeds to the Company of $54 million. The offering is subject to the approval of the Toronto Stock Exchange and all necessary regulatory approvals. The Company has also granted the underwriters an option to purchase up to an additional 900,000 common shares at the offering price exercisable within 30 days after the closing of the offering.

The Company expects to file a preliminary short form prospectus with the securities regulatory authorities in each of the Provinces of Canada other than Quebec to qualify the common shares for distribution no later than February 27, 2007. Closing is expected on or about March 15, 2007.

The proceeds of this offering are intended to be used to retire existing debt of the Company, to advance the company's other mineral properties and port terminal strategy, as well as for working capital and general corporate purposes.

The securities being offered have not been, nor will they be, registered pursuant to the United States Securities Act of 1993, as amended. Absent U.S. registration or an appropriate exemption from U.S. registration requirements, these securities may not be offered or sold within the United States to, or for the account or benefit of, United States residents. Accordingly, this news release does not constitute an offer for sale of securities in the United States.

Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the west coast of North America to meet growing local supply deficits.

Contact Information

  • Polaris Minerals Corporation
    Marco Romero
    President and CEO
    (604) 915-5000
    or
    Polaris Minerals Corporation
    Mike Westerlund
    Director, Corporate Development
    (604) 915-5000
    Email: info@polarmin.com
    Website: www.polarmin.com