- OceanaGold (OGC) has received approximately A$18,840,000 in additional proceeds, thanks to a partially exercised over-allotment option
- Underwriters of the company’s previous equity financing deal bought 8.55 million more common shares at C$2.06 (approximately A$2.20) each
- The underwriters, led by Scotiabank and BMO Capital Markets, had the option to buy up to 10.95 million more shares
- The company will primarily use the extra proceeds to fund its organic growth projects and exploration and development activities
- OceanaGold shares are down 0.47 per cent in early trade, worth $2.12
OceanaGold (OGC) has received approximately A$18,840,000 in additional proceeds, thanks to a partially exercised over-allotment option.
Earlier this month, the mining company conducted a bought deal offering, after entering an agreement with a syndicate of underwriters. In its announcement, OceanaGold indicated that the underwriters had agreed to purchase 73 million common shares in the company.
At an offer price of C$2.06 (approximately A$2.20), the company estimated that it would raise approximately C$150 million (roughly A$157 million) through the equity financing.
The syndicate of underwriters was led by Scotiabank and BMO Capital Markets. It also included Citigroup Global Markets Canada, Raymond James Ltd, National Bank Financial, Cormark Securities, Stifel GMP, Canaccord Genuity and CIBC World Markets.
In conjunction with the offering, OceanaGold granted the underwriters the option to buy up to 10.95 million additional common shares in the company at the offering price. However, the underwriters could only take advantage of the option within the 30 days which immediately followed the offering’s closing date.
On Friday, the underwriters partially exercised and concluded this over-allotment option. They did so by purchasing 8.55 million more common shares, resulting in C$17,613,000 (roughly A$18,840,000) in proceeds.
Just like the initial amount raised through the bought deal offering, the extra money will primarily go towards funding OceanaGold’s organic growth projects. These include the Haile underground development, and ongoing exploration and development activities at the company’s mineral properties in New Zealand.
Some of the additional funds may also go towards supplementing OceanGold’s working capital for general corporate purposes.
OceanaGold shares are down 0.47 per cent in early trade, worth $2.12 at 10:40 am AEDT.