Wednesday, October 17, 2007
- Vancouver, British Columbia
***
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES ***
ADANAC ENGAGES INVESTMENT BANK FOR RUBY CREEK DEBT FINANCING
ADANAC
MOLYBDENUM CORPORATION (AUA: TSX., Pink Sheets: AUAYF, Frank: A9N), is pleased
to announce that it has entered into an engagement letter with a U.S.
investment bank to act as the Company�s exclusive agent and manager in respect
of a proposed financing of debt and convertible debt securities. As currently contemplated, the debt financing
transaction would involve approximately US$ 450 million of senior notes and US$
150 million of convertible debentures.
The aggregate amount and composition of the securities to be sold may vary
from those currently contemplated.
Technical and commercial due diligence work is underway. The engagement letter is not a commitment by
the U.S.
investment bank to purchase any securities and there can be no assurance that
the debt financing transaction can be completed in the amounts currently
contemplated or at all.
The
engagement letter provides that, in the event of a change of control of the
Company prior to the completion of the contemplated debt financing transaction,
a sliding scale break-up fee of 15% of the difference between the market
capitalization of the Company as of October 15, 2007 and the date of the change
of control transaction will be payable by the Company. The break-up fee will not be greater than
US$12,500,000 or less than US$2,500,000.
The
securities may not be offered or sold in the United States, unless registered
thereunder or unless an exemption from registration is available.
On
Behalf of Management
ADANAC MOLYBDENUM
CORPORATION
Michael MacLeod
President and Chief Executive Officer
Information Contact
Michael MacLeod
President and 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