Scorpio Mining Corporation

Scorpio Mining Corporation

October 16, 2007 09:20 ET

Scorpio Mining Announces Pricing for Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2007) -


Scorpio Mining Corporation (TSX:SPM) (the "Company") is pleased to announce that it has finalized the pricing of its previously announced $20 million best efforts private placement (the "Offering") of units of the Company (the "Units") at a price of $1.40 per Unit. Each Unit will consist of one common share of the Company (a "Common Share") and one quarter of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire an additional Common Share for a period of 36 months from the closing of the Offering at a price of $1.85 per Common Share. The Company has retained a syndicate of agents led by CIBC World Markets Inc. and including Blackmont Capital Inc. (the "Agents") in connection with the Offering. The Agents have been granted the option to increase the size of the Offering by up to $2 million at any point prior to 48 hours before closing of the Offering.

Net proceeds from the Offering will be used to finance further development and exploration of the Company's Nuestra Senora silver project in Sinaloa State, Mexico, and for general corporate purposes, including working capital.

The Agents will receive a cash commission equal to 7% of the gross proceeds arising from the Offering and compensation options exercisable into that number of Common Shares equal to 7% of the number of Units sold pursuant to the Offering. The compensation options will have an exercise price equal to the issue price of the Units and the same term as the Warrants issued to investors under the Offering.

The Common Shares and Warrants comprising the Units will be subject to a four-month hold period under applicable securities laws. The Offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals.

Scorpio Mining Corporation is a TSX-listed silver exploration and development company with a primary focus on the exploration and development of its 100% owned Nuestra Senora project. Nuestra Senora is a poly-metallic silver-zinc-lead-copper deposit located in the Cosala Mining District in the state of Sinaloa, Mexico. The project is slated for commercial production in the second quarter of 2008.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.


Peter J. Hawley, Chairman & CEO

This discussion includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Contact Information

  • Jackson Little Holdings Ltd.
    Glenn Little
    (604) 930-4375 or 1-888-930-4375