MINEFINDERS CORP LTD.: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

20 Dec 2010capital raising announcement● NeutralMajor

Minefinders closed the C$151,515,000 bought deal announced on December 13/14, with underwriters purchasing 13,650,000 shares at C$11.10. The 30-day over-allotment option for up to 2,047,500 more shares was still outstanding at the time. Lead underwriters were Scotia Capital and BMO Capital Markets.

What it means for a shareholder

13.7m new shares at C$11.10 to raise about C$152m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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14 Dec 2010capital raising announcement● NeutralMajor

Minefinders announced a bought-deal share sale: underwriters agreed to buy 13,650,000 common shares at C$11.10 for gross proceeds of C$151,515,000, plus a 30-day option for up to 2,047,500 more shares. Proceeds are earmarked for expansion and mill construction at Dolores, continued development of the La Bolsa property, future debt repayments and general corporate purposes. This means new shares and dilution for existing holders (an inference from the share issue).

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