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Adanac Announces $15
million Equity Offering
Proceeds to Partially Fund
Construction, Capital Equipment For Ruby Creek Project
Vancouver,
British Columbia -- December 10, 2007 -- Adanac Molybdenum Corporation (TSX: AUA) (OTC: AUAYF) (FRANKFURT:
A9N) today announced it
plans to raise up to $15 million with an equity offering to partially fund
construction of the company�s proposed Ruby Creek molybdenum project.
�This
financing advances our Ruby Creek project to the next level� said Michael
MacLeod, President and CEO. �The funding it provides will enable Adanac to
continue construction activities and take possession of processing equipment we
have ordered for the molybdenum mine.�
The
offering is being conducted through a syndicate of six agents co-led by Haywood
Securities Inc. and MGI Securities Inc. The transaction structure is a fully
marketed short-form prospectus, which provides for an over-allotment option to
be exercised at the discretion of the agents.
The
initiative seeks to raise the $15 million total with two classes of securities:
o
flow-through shares; and
o
units, with each unit consisting of one common share and
one-half of one common share purchase warrant with each warrant to be
exercisable for a period of 24 months from the applicable closing date.
As
currently contemplated, the flow�through share offering is scheduled to close
on or about December 27, 2007 and the unit offering is scheduled to close on or
about January 8, 2008.
The
equity offering follows Adanac�s October 17, 2007
announcement that the Company is retaining a U.S. investment bank in respect of
a debt offering totaling US$600 million. Use of proceeds of the debt offering
will be the same as for the current equity initiative.
This
news release has been reviewed by Rick Alexander, P.Eng,
a qualified person pursuant to National Instrument
43-101.
About Adanac Molybdenum
Adanac Molybdenum
Corporation is engaged in the exploration and development of mines to produce
molybdenum and ferro-alloy metals. Adanac�s flagship property is the proposed Ruby Creek
molybdenum project, located near Atlin, B.C. The
property contains open pit reserves of 157.7 million tonnes
grading 0.058% Mo at a 0.040% Mo cut-off grade. Procurement of long lead time
equipment has been completed and construction has begun.
Information Contact
Michael MacLeod
President & CEO
Head Office: Suite 200 � 2055 152
Street, Surrey, B.C. V4A 4N7
Corporate Office: 2A 15782
Marine Drive, White Rock, B.C. V4B 1E6
Telephone: 604-531-9639 Facsimile: 604-531-9634
Email: info@adanacmoly.com
The
Toronto Stock
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release.
www.adanacmoly.com