Quadra FNX Mining Ltd.

Quadra FNX Mining Ltd.

October 15, 2010 17:43 ET

Quadra FNX Mining Participates in Far West Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2010) - Quadra FNX Mining Ltd. (TSX:QUX) ("QuadraFNX") exercised its right to maintain its interest in Far West Mining Ltd. ("Far West") and has chosen to participate in a private placement of Units of Far West. In connection with this private placement, Quadra acquired 207,835 units (the "Units") at a price of $4.10 per Unit. Each Unit consists of one common share (a "Share") in the capital of Far West and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Share of Far West for two years at a per share price of $5.35 during the first year and $5.85 during the second year.

Following the transaction, QuadraFNX owns an aggregate of 5,109,796 Shares of Far West representing 7.85% of the issued and outstanding Shares of Far West based on 62,418,016 common shares outstanding as reported by Far West in its MD&A for the quarter ended June 30, 2010 and taking in to account the additional 2,439,025 common shares issued to Pacific Road Resources Funds today. Assuming the exercise of the 4,901,961 share purchase warrants already held by Quadra and the Warrants acquired by QuadraFNX pursuant to this transaction, QuadraFNX will own 10,219,592 shares of Far West, representing 14.56% of the issued and outstanding Shares of Far West.

The Units were acquired by QuadraFNX through the exercise of its right to maintain its ownership interest in Far West pursuant to a subscription agreement entered into on October 30, 2009. The private placement financing closed on October 15th, 2010. In the subscription agreement with respect to this transaction, Far West granted to QuadraFNX the right to maintain a percentage equity interest in Far West, on an ongoing basis. QuadraFNX is not acting jointly or in concert with any other persons or companies in connection with this transaction. QuadraFNX acquired the Units for investment purposes only and depending on market and other conditions, it may increase or decrease its ownership position in Far West in the future.

QuadraFNX relied on the "accredited investor" exemption from the prospectus and registration requirements in connection with the foregoing transaction, contained in Section 2.3 of National Instrument 45-106, Prospectus and Registration Exemptions.

An early warning report respecting this transaction will be filed with the applicable securities commission and will be available for viewing under QuadraFNX's SEDAR profile at www.sedar.com.

Far West Mining Ltd. is an international mineral exploration company engaged in the evaluation, acquisition, exploration and development of mining properties in Chile and Australia. It is listed on the TSX under the symbol FWM and it is a reporting issuer under the securities legislation of British Columbia, Alberta, and Ontario.

Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. QuadraFNX produces copper, gold, nickel and platinum group metals from its operating mines: the Robinson mine in Nevada, the Carlota mine in Arizona, Franke mine in northern Chile, and the McCreedy West, Levack and Podolsky mines in Sudbury, Ontario. QuadraFNX possesses several advanced development projects, including the Morrison Deposit in Sudbury, the Sierra Gorda copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. Quadra employs approximately 1,650 people in North and South America.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Media and Investor Relations Contact:
    Quadra FNX Mining Ltd.
    Derek White
    Executive Vice President, Corporate Development
    Quadra FNX Mining Ltd.
    Nawojka Wachowiak
    Vice President, Investor Relations