NYSE: TC
TSX: TCM
TSX-V: TRX.WT
DENVER, CO, May 7, 2012 /CNW/ - Thompson Creek Metals Company Inc.
(the
"Company" or "Thompson Creek") today announced the pricing of an
offering of 8,800,000 of its 6.50% tangible equity units ("tMEDS"),
each with a stated amount of $25. The tMEDS priced at $25 each,
generating net proceeds of approximately $212.0 million. Of the $220.0
million aggregate stated amount of tMEDS, approximately $177.5 million
will be accounted for as equity and $35.9 million will be accounted for
as debt. The tMEDS offering is expected to close, subject to customary
closing conditions, on May 11, 2012.
The Company intends to use the net proceeds from the tMEDS offering,
together with the net proceeds from a concurrent offering of Senior
Notes due 2019, cash from operations and funds from prior financing
arrangements, to complete construction of its Mt.
Milligan copper-gold
mine. Neither the offering of the tMEDS nor the concurrent offering of
Senior Notes due 2019 is contingent upon completion of the other
offering, and each offering is being conducted as a separate public
offering.
The underwriters of the tMEDS offering have a 13-day option to purchase up to an additional 1,200,000 tMEDS to cover over-allotments.
Each tMEDS is a unit composed of a prepaid stock purchase contract and a senior amortizing note due May 15, 2015. Each purchase contract will automatically settle on May 15, 2015 for between 4.5855 and 5.3879 shares of Thompson Creek common stock, subject to adjustment as described in the prospectus supplement relating to the tMEDS offering. The amortizing notes will pay equal quarterly installments of $0.406250 per amortizing note, which will constitute a payment of interest and a partial repayment of principal, and which in the aggregate will be equivalent to a 6.50% cash payment per year with respect to each $25 stated amount of tMEDS. The amortizing notes will be senior unsecured obligations of the Company.
J.P.
Morgan Securities LLC, Deutsche Bank Securities Inc.
and RBC
Dominion Securities Inc.
served as book-running managers of the tMEDS
offering. The offering is subject to approval of the Toronto Stock
Exchange.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc.
is a growing, diversified North
American mining company. The Company produces molybdenum at its
100%-owned Thompson Creek Mine in Idaho and Langeloth Metallurgical
Facility in Pennsylvania and its 75%-owned Endako Mine in northern
British Columbia. Thompson Creek has approximately 1,100 employees.
Its principal executive office is in Denver, Colorado and its Canadian
administrative office is in Vancouver, British Columbia.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation.
Forward-looking statements include statements with respect to: the
actual or anticipated timing or amount of securities offerings, the
terms of the securities offered, future financial or operating
performance of Thompson Creek or its subsidiaries and its projects;
future inventory, production, sales, cash costs, capital expenditures
and exploration expenditures; future earnings and operating results;
expected concentrate grades, and recovery; statements as to the
projected development of Mt.
Milligan and other projects, including
expected production commencement dates; Mt.
Milligan development costs;
2012 operating goals; and 2012 molybdenum prices.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause actual results to
differ materially from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors
include, among others, risks related to whether the tMEDS offering will
be completed; whether the concurrent offering of Senior Notes due 2019
will be successful; whether the aggregate proceeds of the tMEDS
offering and concurrent offering of Senior Notes due 2019 will provide
sufficient funding for the construction and development of Mt.
Milligan
or other expenditures; whether we will be able to obtain any additional
necessary debt or equity financing on a timely basis; general business,
economic, competitive, political and social uncertainties including
global economic conditions; volatility in molybdenum prices; labor cost
and materials cost fluctuations; foreign currency fluctuations; energy
price fluctuations; project delays; title disputes or claims;
limitations of insurance coverage; changes in governmental regulation
of mining operations; risks related to the volatility of Thompson
Creeks share price; changes in environmental regulation; actual
results of current exploration activities; actual results of
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; possible variations
of ore grade or recovery rates; mining and processing conditions;
construction delays and related disruptions in production; costs of
capital expenditures; industrial accidents; weather and geological
related conditions; permitting and regulatory matters (including
penalties, fines, sanctions and shutdowns); and failure of plant,
equipment or processes to operate as anticipated. Additional factors
that could cause Thompson Creeks results to differ from those
described in the forward-looking statements can be found in the section
entitled Risk Factors in Thompson Creeks Annual Report on Form
10-K and in Part II, Item 1A of Form 10-Q, and subsequent documents
filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date
of this news release and Thompson Creek disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as required
by law. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, the
reader is cautioned not to place undue reliance on forward-looking
statements.