AFRIORE ANNOUNCES C$20 MILLION BOUGHT DEAL PRIVATE PLACEMENT FINANCING
24th January 2006
AFRIORE LIMITED (AIM/TSX: AFO) is pleased to announce that it has entered into an agreement with Westwind Partners Inc. and Canaccord Capital Corporation (the "Underwriters") which have agreed to purchase, on a bought deal private placement basis, 5,650,000 common shares of the Company at a price of Cad$3.55 per share, for aggregate gross proceeds of Cad$20,057,500.
The Underwriters intend to appoint an underwriter dealer group consisting of other registered dealers acceptable to the Company for the purpose of arranging purchases of the common shares. The Underwriters will also have the option to purchase up to an additional 570,000 common shares at the issue price for a period of up to 48 hours prior to closing for additional gross proceeds of up to Cad$2,023,500. The Company plans to use the net proceeds of this financing to fund advancement of the Company's mineral projects and for general corporate purposes.
The offering is scheduled to close on or about February 9, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
AfriOre is engaged in the acquisition, exploration and development of gold and platinum exploration properties in Africa. It has gold exploration properties in South Africa, Namibia and Kenya and the Akanani platinum group metals properties in South Africa.
AfriOre is listed in Standard & Poor's Corporation Records and furnishes information to the SEC pursuant to Rule 12g 3-2(b) under the Securities Exchange Act of 1934.
For further information, please contact:
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AfriOre Limited Stuart Comline T: +27 83 654 5449 |
Charles Stanley & Co Dugald Carlean T: +44(0) 20 7953 2485 |
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Alan Friedman Tau Capital Corp T: +1 416 361 9636 |
Parkgreen Communications Justine Howarth / Ana Ribeiro T: +44 (0) 20 7493 3713 |
