INV Metals Announces $13 Million Bought Deal Financing
NOT FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, ON – October 21, 2010 – INV Metals Inc. (“INV Metals” or “Company”) (TSX: INV) is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Raymond James Ltd. and including GMP Securities L.P. and Dundee Securities Corporation (collectively the “Underwriters”), which have agreed to purchase, on a bought deal basis by way of short-form prospectus, 11,350,000 common shares (the “Shares”) of INV Metals at a purchase price of $1.15 per Share (the “Offering Price”), for aggregate gross proceeds in the amount of approximately $13,052,500 (the “Offering”).
In addition, the Company has granted the Underwriters an option to purchase up to an additional 1,702,500 Shares (representing 15% of the base Offering) at the Offering Price exercisable within 30 days after the closing of the Offering for additional gross proceeds in the amount of up to approximately $1,957,875.
The Offering is scheduled to close on or about November 12, 2010 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 and the securities regulatory authorities.
The net proceeds of the Offering are intended to be used for exploration and development expenditures at INV Metals’ Kaoko and Rio Novo exploration projects, as well as for working capital and general corporate purposes. INV Metals, through its wholly owned subsidiaries, is currently earning a 50% interest in the Kaoko and Rio Novo properties from Teck Resources Limited through its Namibian and Brazilian subsidiaries.
These securities offered 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 registration requirements.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
About INV™ Metals Inc.
INV™ Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil, Namibia and Canada. Currently, INVTM Metals’ primary assets are: (1) its option to acquire 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its 100% owned Itaporã gold properties, located in Brazil and (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario. Please also refer to INV™ Metals’ Management’s Discussion and Analysis dated August 4, 2010, available on SEDAR at www.sedar.com and the corporate presentation on INV™ Metals’ website at www.invmetals.com to view additional details relating to the properties.
This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond INV Metals’ ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the ability to complete the financing, fluctuations in commodity prices or the price of the Company’s common shares. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form with Canadian securities regulators available on www.sedar.com or INV Metals’ website at www.invmetals.com.