VANCOUVER, Oct. 4 /PRNewswire-FirstCall/ - Exeter Resource
Corporation (AMEX:XRA, TSX:XRC, Frankfurt:EXB or the "Company") is
pleased to announce that it has entered into an agreement with an
underwriter (the "Underwriter"), pursuant to which the Underwriter
has agreed to purchase, on a bought deal basis, pursuant to a
Canadian short form prospectus, 8,065,000 common shares (the
"Common Shares") of the Company at a price of CAD$6.20 per share for gross proceeds of
CAD$50,003,000 (the "Underwritten
Offering"). In addition, the Company will grant the Underwriter an
over-allotment option, exercisable prior to the closing of the
Underwritten Offering, to purchase from the Company up to an
additional 1,209,750 common shares at CAD$6.20 per share to raise additional gross
proceeds of up to CAD$7,500,450 (the
"Over-Allotment Option", and together with the Underwritten
Offering, the "Offering").
In connection with this Offering the Underwriter will receive a
cash commission of 6% of the gross proceeds raised.
The Company intends to use the net proceeds from the Offering to
advance the Company's Caspiche Project and for general working
capital. Specifically, the proceeds will fund a project
prefeasibility study, the entering into of certain infrastructure
contracts, drilling to facilitate advanced mine optimization
studies, additional metallurgical testwork and process design
studies, and follow-up drilling on exploration targets in the
area.
Closing of the Offering is anticipated to occur on or before
October 27, 2010 and is subject to
certain conditions including, but not limited to, the completion of
satisfactory due diligence by the Underwriter and the receipt of
applicable regulatory approvals including approval of the Toronto
Stock Exchange and the NYSE Amex.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the Common Shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Common Shares have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to, or for the account of
benefit of, U.S. persons (as defined in Regulation S under the U.S.
Securities Act) unless registered under the U.S. Securities Act and
applicable state securities laws or pursuant to an exemption from
such registration requirements.
EXETER RESOURCE CORPORATION
Bryce Roxburgh
President and CEO
Safe Harbour Statement - This news release contains
"forward-looking information" and "forward-looking statements"
(together, the "forward-looking statements") within the meaning of
applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995, including in relation to the
Company's belief as to the extent and timing of its financing and
its drilling programs, various studies including engineering,
environmental, infrastructure and other studies, and exploration
results, budgets for its exploration programs, the potential
tonnage, grades and content of deposits, timing, establishment and
extent of resources estimates, potential for financing its
activities, potential production from and viability of its
properties, permitting submission and timing and expected cash
reserves. These forward-looking statements are made as of the date
of this news release. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While the Company
has based these forward-looking statements on its expectations
about future events as at the date that such statements were
prepared, the statements are not a guarantee that such future
events will occur and are subject to risks, uncertainties,
assumptions and other factors which could cause events or outcomes
to differ materially from those expressed or implied by such
forward-looking statements. Such factors and assumptions include,
among others, the effects of general economic conditions, the price
of gold and silver, changing foreign exchange rates and actions by
government authorities, uncertainties associated with legal
proceedings and negotiations and misjudgements in the course of
preparing forward-looking information. In addition, there are known
and unknown risk factors which could cause the Company's actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Known risk factors include risks
associated with project development; the need for additional
financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters;
uncertainties and risks related to carrying on business in foreign
countries; environmental liability claims and insurance; reliance
on key personnel; the potential for conflicts of interest among
certain officers, directors or promoters of the Company with
certain other projects; the absence of dividends; currency
fluctuations; competition; dilution; the volatility of the
Company's common share price and volume; tax consequences to U.S.
investors; and other risks and uncertainties, including those
described in the Company's Annual Information Form for the
financial year ended December 31,
2009 dated March 30, 2010
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. 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, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian securities
laws, which differ from the requirements of United States securities laws. In particular,
the term "resource" does not equate to the term "reserve". The
Securities Exchange Commission's (the "SEC") disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by U.S., unless such information is required to be
disclosed by the law of the Company's jurisdiction of incorporation
or of a jurisdiction in which its securities are traded. U.S.
investors should also understand that "inferred mineral resources"
have a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. Disclosure
of "contained ounces" is permitted disclosure under Canadian
regulations; however, the SEC normally only permits issuers to
report mineralization that does not constitute "reserves" by SEC
standards as in place tonnage and grade without reference to unit
measures.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
SOURCE Exeter Resource Corporation
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