NORTHERN ONTARIO - Toronto's FNX MINING is raising money to redevelop the former Levack nickel mine and continue work at its other properties in the Sudbury Basin. The first offering will raise gross proceeds of $102 million through the sale of 7.5 million common shares at $13.60 each to BMO NESBITT BURNS. The underwriters also have an option to purchase for resale another 2.5 million common shares, also at $13.60 each. If the option is exercised, total gross proceeds will be $136 million. The offer is scheduled to close on Nov. 28, 2005.
The company will spend a portion of the money raised this month on rehabilitation and development of the former Levack mine where it has already spent $10 million on rehabilitation of the No.2 shaft. The balance of the net proceeds will be applied to Phase I development of the Podolsky 2000 deposit; Phase II development of the PM deposit; exploration and development of the Levack footwall deposits; exploration and development of the Podolsky North and South deposits; exploration of the Aurora properties; plus working capital and general corporate purposes.
FNX recently bought out its Sudbury Joint Venture partner, DYNATEC, and now holds 100% of these projects. Information on all of these undertakings is available at www.FNXMining.com.
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