Quadra Mining Ltd.

Quadra Mining Ltd.

April 19, 2007 08:19 ET

Quadra Mining Ltd. Announces CDN$131 Million Bought Deal of Units

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 19, 2007) -


Quadra Mining Ltd. (TSX:QUA) ("Quadra" or the "Company") announced today that it has entered into a bought deal agreement with a syndicate of underwriters led by Orion Securities Inc. and including BMO Capital Markets and Raymond James Ltd. Under the agreement, the syndicate will purchase 10,400,000 units ("Units") of the Company at a price of CDN$12.60 per Unit ("the Offering Price") for gross proceeds of CDN$131,040,000. Each Unit consists of one common share (each, a "Common Share") of Quadra and one-half of one common share purchase warrant of Quadra, with each whole warrant entitling the holder thereof to acquire a further Common Share at an exercise price of CDN$20.00 for a period of three years from the Closing Date. The Company will grant the Underwriters an over-allotment option, to purchase up to an additional 1,560,000 Units (CDN$19,656,000), exercisable at the Offering Price up until 24 hours prior to the Closing Date. The Company expects to file a Preliminary Short Form Prospectus with the applicable securities regulatory authorities to qualify the Units for distribution on April 25, 2007.

The net proceeds are intended to be used for repayment of the Company's outstanding secondary tranche of debt, exploration and development at Sierra Gorda, exploration and development at the Malmbjerg molybdenum project, and for general working capital and corporate purposes.

The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals. The offering is expected to close on or about May 9, 2007.

Sales into the United States shall be permitted to designated purchasers in substitution of the underwriters in accordance with Rule 506 of Regulation D promulgated under the U.S. Securities Act of 1933, as amended or such other exemptions as are agreed to by the Company and the underwriters. This release does not constitute an offer for sale of securities in the United States.

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal asset is the Robinson Mine in Nevada. The Company has a goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.


Paul Blythe, President and Chief Executive Officer

This Press Release may contain "forward-looking information" that is based on Quadra's expectations, estimates and projections as of the dates as of which those statements were made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and a discussion of these and other factors that may affect Quadra's actual results, performance, achievements or financial position is contained in the filings by Quadra with the Canadian provincial securities regulatory authorities, including Quadra's AIF. Quadra disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise.

Contact Information

  • Media and Investor Relations Contact:
    Quadra Mining Ltd.
    Sophie Taylor, Manager, Investor Relations
    (604) 689-8550, Ext. 110
    Email sophietaylor@quadramining.com
    Quadra Mining Ltd.
    Paul Blythe
    President and Chief Executive Officer
    (604) 689-8550, Ext. 102
    Website: www.quadramining.com