Polaris Raises CDN$75,015,288 in Initial Public Offering and Closes Debt Financing
January 10, 2006
Not for distribution to U.S. news wire services or dissemination in the United States
VANCOUVER, British Columbia - Polaris Minerals Corporation (the "Company" or "Polaris") is pleased to announce that it has completed an Initial Public Offering of 15,628,185 common shares at a price of CDN$4.80 per share for total gross proceeds of CDN$75,015,288. The amount includes the exercise of an option granted to the syndicate of agents of the offering, led by GMP Securities L.P., and including Canaccord Capital Corporation, Dundee Securities Corporation, Orion Securities Inc., TD Securities Inc., and Wellington West Capital Markets Inc. (collectively, the "Agents"), whereby the Agents purchased 2,086,185 common shares at a price of CDN$4.80 per share.
Polaris has also granted the Agents an over-allotment option exercisable within 30 days following closing to purchase up to an additional 1,875,000 common shares at a price of CDN$4.80 per share for additional gross proceeds of up to CDN$9,000,000.
Polaris' common shares will commence trading on the Toronto Stock Exchange under the symbol "PLS" effective today.
The Company is also pleased to announce that it has closed the debt financing with Ingalls & Snyder Value Partners, L.P., as senior lender and administrative agent, Ingalls & Snyder, LLC, as collateral agent, and a group of accredited investors arranged by Ingalls & Snyder, LLC, (collectively, the "Lenders") pursuant to the credit agreement entered into between the Lenders and the Company dated November 30, 2005. Under this debt financing, the Lenders have agreed to extend credit to the Company in an aggregated principal amount of up to US$47 million.
Marco Romero, the Company's President and CEO, stated "The completion of our Initial Public Offering and debt financing provides the Company with the financial resources to immediately embark upon the development of the Orca Quarry, located near Port McNeill on Vancouver Island, B.C., Canada, and the construction of our terminal and discharge facility located in the Port of Richmond in San Francisco Bay, California. The Orca Quarry is expected to become a large, high quality, sand and gravel producer serving the California construction industry."
Polaris is a British Columbia company headquartered in Vancouver, B.C. The Company is exclusively focused on the emerging trade of marine exports of construction aggregates from its coastal properties located on Vancouver Island, British Columbia, Canada, to the coastal urban markets on the west coast of North America, primarily in California.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For further information, please contact:
Marco Romero, President and Chief Executive Officer
Polaris Minerals Corporation
Tel: (604) 915 5000, Ext.101