The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Copper Mountain Provides Update On Bought Deal Financing Announced January 19, 2010 & Advises of Restatement of Sept 30, 2010 Interim Financial Statements

Monday, January 31, 2011

Copper Mountain Provides Update On Bought Deal Financing Announced January 19, 2010 & Advises of Restatement of Sept 30, 2010 Interim Financial Statements14:49 EST Monday, January 31, 2011/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/ Web Site: www.CuMtn.comTSX: CUMVANCOUVER, Jan. 31 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) ("Copper Mountain" or the "Company") provides an update to its news release dated January 19, 2011 where the Company announced that it had entered into an agreement for the issuance of 4,980,000 common shares (the "Shares") of the Company, on a bought deal basis, at a price of Cdn$7.05 per Share for gross proceeds of Cdn$35,109,000.   The underwriting syndicate consists of Wellington West Capital Markets Inc., BMO Nesbitt Burns Inc., Raymond James Ltd., Canaccord Genuity Corp. and Jennings Capital Inc. (collectively, the "Underwriters").  The Underwriters also have the option to purchase up to an additional 700,000 Shares (the "Underwriters' Option"), to cover over-allotments. The aggregate gross proceeds under the offering will be $40,044,000 if the Underwriters' Option is exercised in full.The Company intends to use the net proceeds of the offering to acquire interests and / or rights in other mining or mineral properties, other acquisitions, general and administrative expenses, working capital purposes and corporate development.  The Company's actual use of the net proceeds may vary depending on the Company's operating and capital needs from time to time.  There may be circumstances where, for sound business reasons, a reallocation of funds may be necessary.  The offering is scheduled to close on or about February 8, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.The Company also announces that the Company has filed on SEDAR an amended and restated interim unaudited consolidated financial statements of the Company for the three and nine months ended September 30, 2010.  The refiling of the third quarter interim consolidated financial statements is not considered material by the Company and was undertaken as a result of a review by PricewaterhouseCoopers LLP of the Company's interim consolidated financials in connection with the Company's Preliminary Short Form Prospectus dated January 24, 2011. PricewaterhouseCoopers LLP identified that the Company had previously included $11.9 million of cash outflows in settlement of accounts payable and payment of $9.0 million of input tax credits related to construction of the Copper Mountain project as operating activities on the statement of cash flows. PricewaterhouseCoopers LLP have taken the position that these items should have been included in investing activities under property plant and equipmet on the statement of cash flows.  The cash flow statements for the three and nine month periods ended September 30, 2010 have been restated to adjust the allocation of cash outflows between operating activities and investing activities.The operating and investing cash flows before and after the adjustment are as follows:Three months ended September 30, 2010  As Previously Filed Adjustment RestatedCash flow from operating activities ($21,910,293) $20,899,921 ($1,010,372)Cash flow from investing activities ($52,185,273) ($20,899,921) ($73,085,194) Nine months ended September 30, 2010  As Previously Filed Adjustment RestatedCash flow from operating activities ($23,834,399) $20,899,921 ($2,934,478)Cash flow from investing activities ($142,408,067) ($20,899,921) ($163,307,988)In the Company's view, the amendments to its third quarter interim consolidated financial statements are not material since there has been no change to the shareholders' equity, net assets of the Company or income statements for the periods reported upon.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 "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.About Copper Mountain Mining CorporationCopper Mountain is a Canadian resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company's shares trade on the Toronto Stock Exchange under the symbol "CUM". Copper Mountain owns 75% and Mitsubishi Materials Corporation owns 25% of the Copper Mountain Project. The 18,000 acre mine site is located 20 km south of the town of Princeton in southern British Columbia. The Copper Mountain Project has a current resource of approximately 5 billion pounds of copper, the project is fully financed ($438M) and in construction and on schedule for the mine to produce approximately 100 million pounds of copper per year by mid 2011. Additional information is available on the Company's web page at www.CuMtn.com.On behalf of the Board ofCOPPER MOUNTAIN MINING CORPORATION"Rod Shier" Rod ShierChief Financial OfficerNote:  This release contains forward-looking statements that involve risks and uncertainties.  These statements may differ materially from actual future events or results.  Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.  The Company undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statement.For further information: Rod Shier, Chief Financial Officer 604 682 2992 ext 222 or Galina Meleger: Corporate Communications 604 682 2992 ext. 224 Email: Galina.meleger@CuMtn.com Website: www.CuMtn.com