TORONTO, Ontario, January 15, 2015 – Lydian International Limited (TSX: LYD) (“the Company” or “LYD”) is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Scotia Capital Inc. and including GMP Securities L.P., BMO Capital Markets and National Bank Financial (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 30,000,000 ordinary shares (the “Ordinary Shares”) of the Company, at a price of C$0.55 per Share (the “Offering Price”) for aggregate gross proceeds to the Company of C$16,500,000 (the “Offering”).
In addition, the Company has granted the Underwriters an option (“Over-Allotment Option”), exercisable in whole or in part, to purchase up to an additional 4,500,000 Ordinary Shares from the treasury of the Company at the offering price exercisable at any time on or up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering shall be approximately $18,975,000.
The Company intends to use the net proceeds of the Offering to advance the Company’s Amulsar gold project and for general corporate purposes.
Closing of the Offering is expected to occur on or about February 4, 2015 and is subject to certain conditions including but not limited to the receipt of all regulatory approvals including that of the Toronto Stock Exchange.
The Ordinary Shares to be issued under the Offering will be offered by way of a short form prospectus in each of the provinces of Canada, except Québec, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and certain other jurisdictions.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Lydian International
Lydian is an emerging gold developer, focused on its 100% owned Amulsar Gold Project, located in Southern Armenia. The Company’s current mine development and construction plan for Amulsar is aimed at achieving average production of 200,000 ounces of gold per year and establishing the Company as a high cash-flow producer. The Company is committed to best practices in all aspects of its operations including production, sustainability, and good corporate citizenry. For more information on Lydian please visit www.lydianinternational.co.uk.
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. 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, mine site planning and development, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing 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:
Chief Financial Officer