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Adanac Molybdenum arranges $30-million bought deal

2007-03-29 14:09 PT - News Release

Mr. Larry Reaugh reports

ADANAC MOLYBDENUM CORPORATION: $30,000,000 BOUGHT DEAL FINANCING

Adanac Molybdenum Corp. has entered into an agreement with GMP Securities LP, MGI Securities Inc., Dundee Securities Corp., Evergreen Capital Partners Inc. and Fraser Mackenzie Ltd. (collectively, the underwriters), whereby the underwriters will purchase 15,789,474 units of the company at a price of $1.90 per unit for total proceeds of $30-million on a bought-deal, underwritten, private-placement basis. Each unit will consist of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable for a period of two years after the closing of the offering at a price of $3 per share. The company has also granted to the underwriters a 15-per-cent overallotment option, which, if exercised by the underwriters up to 48 hours prior to the closing of the offering, will allow the underwriters to purchase a total of up to 2,368,421 additional units at a price of $1.90 per unit.

The company has agreed to pay to the underwriters a commission equal to 6 per cent of the total gross proceeds of the offering. In addition, the company agreed to issue to the underwriters broker warrants exercisable for units of the company having the same attributes as the units equal to 6 per cent of the number of units sold under the offering at a price of $1.90 per unit. The offering is subject to applicable regulatory filings and approvals.

We seek Safe Harbor.

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