Great Panther Announces $10 Million Equity Offering
27 October 2009 - 11:00PM
Marketwired
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
GREAT PANTHER RESOURCES LIMITED (TSX: GPR) (the "Company")
announced today that it has filed a preliminary short form
prospectus in Canada in connection with an agency offering of units
("Units") to raise up to Cdn$10 million (the "Offering").
Each Unit will consist of one common share and one-half of one
common share purchase warrant, each whole warrant exercisable to
purchase one common share for a term of two years from the closing
date. The offering price will be determined before the filing of
the final short form prospectus.
The Offering will be conducted through a syndicate of agents led
by Salman Partners Inc. and Dundee Securities Corporation and
including Fraser Mackenzie Limited (together "the Agents").
The Company has agreed to grant the Agents an over-allotment
option to purchase up to that number of additional Units of Great
Panther equal to 15% of the Units sold pursuant to the Offering,
exercisable at any time, in whole or in part, up to 30 days from
the closing of the Offering (the "Over-Allotment Option"). If the
Over-Allotment Option is exercised in full, the total gross
proceeds to Great Panther will be approximately Cdn$11,500,000.
The Company intends to use the net proceeds of the Offering to
accelerate exploration drilling, mine development, the acquisition
of new underground equipment, mine infrastructure refurbishment
including power distribution at Guanajuato and plant equipment
replacement and upgrades at both Topia and Guanajuato, and for
general working capital purposes.
The Agents will be paid a cash commission of 6% of the gross
proceeds from the Offering including proceeds realized from the
exercise by the Agents of the Over-Allotment Option, if any. The
Agents will also be granted broker warrants equal in number to 6%
of the number of Units sold pursuant to the Offering. Each broker
warrant will be exercisable to purchase one common share of the
Company for a period of two years following the closing date. The
common shares will be offered publicly in the provinces of Canada
other than Quebec, in Europe and on a private placement basis in
the United States pursuant to exemptions from the registration
requirements of the U.S. Securities Act of 1933, as amended, and
internationally, pursuant to available exemptions.
Closing of this offering is expected to occur on or about
November 17, 2009 and is subject to receipt of all necessary
regulatory approvals, including the approval of the Toronto Stock
Exchange.
This news release is not an offer of securities for sale in the
United States. The securities described above have not been and
will not be registered under the U.S. Securities Act of 1933, and
may not be offered or sold in the United States absent registration
under the U.S. Securities Act of 1933, or an applicable exemption
from the registration requirements thereof.
Great Panther's strategy is to be a growing and profitable
silver mining company by increasing its low cost silver production
and silver resources. The Company has two 100% owned operating
mines in Mexico.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
the Securities Act (Ontario) (together, "forward-looking
statements"). Such forward-looking statements may include but are
not limited to the Company's plans for production at its Guanajuato
and Topia Mines in Mexico, exploring its other properties in
Mexico, the overall economic potential of its properties, the
availability of adequate financing and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Such factors
include, among others, risks and uncertainties relating to
potential political risks involving the Company's operations in a
foreign jurisdiction, uncertainty of production and cost estimates
and the potential for unexpected costs and expenses, physical risks
inherent in mining operations, currency fluctuations, fluctuations
in the price of silver, gold and base metals, completion of
economic evaluations, changes in project parametres as plans
continue to be refined, the inability or failure to obtain adequate
financing on a timely basis, and other risks and uncertainties,
including those described in the Company's Annual Report on Form
20-F for the year ended December 31, 2008 and reports on Form 6-K
filed with the Securities and Exchange Commission and available at
www.sec.gov and Material Change Reports filed with the Canadian
Securities Administrators and available at www.sedar.com.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@greatpanther.com www.greatpanther.com
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