LionOre Completes Convertible Note Offering

On July 29, 2004, LionOre Mining International Ltd. completed an offering of US$140 million senior unsecured convertible notes due in July 2011. The notes are convertible into approximately 22.8 million shares or 11.7 per cent of LionOre’s current outstanding share capital. In addition, LionOre has granted Barclays Capital, the sole bookrunner and the stabilisation manager, a 30 day option to buy an additional US$10 million of the notes.

The notes will carry a coupon of 3.8 per cent per annum for a seven year maturity. The conversion price was set at US$6.13, a premium of 37 per cent over the weighted average price of LionOre shares on the Toronto Stock Exchange on the closing date. LionOre, which also trades on the Australian and London Stock Exchanges, will use the proceeds from the offering for general corporate purposes. LionOre’s major mining assets include the Phoenix nickel mine in Botswana and the Emily Ann nickel and Thunderbolt gold mines in Australia.

LionOre was represented by McCarthy Tétrault, with a team comprising Robert Brant and James Channo in London, UK and Brian Graves in Toronto. Barclays Capital was advised by UK firm Clifford Chance, with a team led by Simon Sinclair and Simon Thomas.


Brian Graves Simon Sinclair Robert J. Brant


Sommers Roth & Elmaleh Professional Corporation Clifford Chance Rogers & Wells LLP