Not for distribution to United States newswire services or for dissemination in the United States
TORONTO, Ontario, October 12, 2010 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, announced today that it has filed a preliminary short form prospectus in respect of its previously announced bought deal offering. The Company entered into an underwriting agreement with a syndicate of investment dealers led by Cormark Securities Inc. and including Dundee Securities Corporation, Canaccord Genuity Corp., TD Securities Inc. and Stifel Nicolaus Canada Inc. (the “Underwriters”), which have agreed to purchase 8,100,000 ordinary shares (the “Shares”) of Lydian at a purchase price of $2.13 per Share (the “Offering Price”), for aggregate gross proceeds in the amount of $17.3 million on a bought deal basis (the “Offering”).
In addition, the Company has granted the Underwriters an option (the "Over-Allotment Option") to cover over-allotments, if any, to purchase up to an additional 1,215,000 Shares (representing 15% of the base Offering) at the Offering Price, for additional gross proceeds in the amount of up to approximately $2.6 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days after the closing of the Offering.
The Offering is scheduled to close on or about October 26, 2010 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 intends to use the net proceeds of the Offering for drilling, metallurgical studies and prefeasibility
studies at the Company’s Amulsar project in Armenia, for exploration and exploratory drilling at new properties and for general corporate purposes.
These securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction.
The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
Cautionary and Forward-Looking Statements:
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. All statements regarding the amount of the Offering, the “bought deal” basis of the Offering and the timing associated therewith, the size, proceeds and use of proceeds of the Offering and the Over Allotment Option granted to the Underwriters are forward-looking statements and estimates that involve various risks and uncertainties. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors” which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information please contact:
Investor Relations Manager
+44 (0)1534 715472
+44 (0)7829 848420