Quadra Mining Ltd.
TSX : QUA

Quadra Mining Ltd.

March 20, 2009 14:11 ET

Quadra Mining Ltd. Announces CDN$65 Million Bought Deal of Common Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Quadra Mining Ltd. (TSX:QUA) ("Company" or "Quadra") announced today that it has entered into a bought deal agreement with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Raymond James Ltd., BMO Capital Markets, GMP Securities L.P. and Paradigm Capital Inc. Under the agreement, the syndicate will purchase 14,000,000 common shares ("Common Shares") of the Company at a price of CDN$4.65 per Common Share (the "Offering Price") for gross proceeds of CDN$65,100,000. The Company will grant the Underwriters an over-allotment option, to purchase up to an additional 2,100,000 Common Shares (CDN$9,765,000), exercisable at the Offering Price, at any time up to 5:00 pm (Toronto time) on the day which is 30 days following the closing date.

The Company expects to file a Preliminary Short Form Prospectus with the applicable securities regulatory authorities to qualify the Common Shares for distribution on March 26, 2009.

The net proceeds are intended to be used to refinance the existing project debt, pay obligations to project contractors and complete development of the Franke Project, as well as for general working capital and corporate purposes.

The closing of the offering is subject to the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange. The offering is also conditional upon the completion of Quadra's previously announced acquisition of Centenario Copper Corporation on the terms disclosed by Quadra and Quadra having arranged a committed senior secured credit facility in the amount of not less than US$37.5 million. The offering is expected to close on or about April 16, 2009.

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.

About Quadra Mining Ltd. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal assets are the Robinson Mine in Nevada, producing copper and gold, the Carlota Mine in Arizona, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. On February 9, 2009, Quadra entered into a definitive agreement to acquire, subject to certain conditions, all of the issued and outstanding common shares of Centenario Copper Corporation, whose principal asset is the Franke SX/EW, heap leach project in northern Chile. The Company has the goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.

ON BEHALF OF

QUADRA MINING LTD.

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
    sophietaylor@quadramining.com
    www.quadramining.com
    or
    Quadra Mining Ltd.
    Paul Blythe
    President and Chief Executive Officer
    (705) 444-1316
    or
    Quadra Mining Ltd.
    Suite 2414, Four Bentall Centre
    1055 Dunsmuir Street, PO Box 49185
    Vancouver, BC V7X 1K8