MINES MANAGEMENT INC: announcements explained, share price

Announcements, explained

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

5 Nov 2007capital raising announcement▲ GoodMajor

On November 2, 2007 the company sold 2,500,000 shares at US$4.00 (US$10 million) to Silver Wheaton Corp. in a private placement. It also granted Silver Wheaton a twenty-year right of first proposal and right to match third-party offers to buy silver the company produces in Montana, and agreed to register the shares for resale in the US. The price is below the US$5.00 paid in the April 2007 offering.

What it means for a shareholder

2.5m new shares at US$4.00 to raise about US$10.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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10 May 2007capital raising announcement▲ GoodMajor

On May 9, 2007 the underwriters exercised their over-allotment option for 836,600 more units at US$5.00, adding US$4,183,000 gross. This brings the April 2007 offering to 6,836,600 units, US$34,183,000 gross and US$32,132,020 net of underwriting commissions; the press release says proceeds will fund part of a two-year advanced exploration and underground drilling program at the Montanore Silver-Copper Project in Montana and general corporate purposes.

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24 Oct 2005capital raising announcement▲ GoodMajor

On October 21, 2005 the company sold 1,016,677 shares and five-year warrants for 588,334 more shares (exercise price $8.50) to accredited investors for $6,100,000 in total. It plans to use the money for general corporate purposes and agreed to file a registration statement so the investors can resell the shares; existing shareholders are diluted by the new shares and potential warrant shares.

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