Total
0
Shares
OceanaGold (ASX:OGC) unveils $157M bought deal offering
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Mining company OceanaGold (OGC) has entered into an agreement with a syndicate of underwriters to raise approximately A$157 million
  • The underwriters, led by Scotiabank and BMO Capital Markets, have agreed to purchase 73 million common shares in the company
  • OceanaGold’s offering will fund projects including the Haile underground development and exploration of mineral properties in New Zealand
  • The company expects the bought deal offering to close on October 19, 2020
  • OceanaGold closed 9.32 per cent in the red for $2.14 per share

Mining company OceanaGold (OGC) has entered into an agreement with a syndicate of underwriters to raise approximately A$157 million.

The syndicate, led by Scotiabank and BMO Capital Markets, have agreed to purchase 73 million common shares in the company. The underwriters agreed to purchase the shares on a bought deal basis, at C$2.06 (roughly A$2.16) per offered share.

This will result in aggregate gross proceeds of C$150.38 million (approximately A$157.4 million) from the offering. 

OceanaGold has also granted the underwriters the option to buy up to 10.95 million more common shares at the offering price. This option has been provided in order to cover any over-allotments, and for market stabilisation purposes. 

The underwriters will be able to exercise this option in part or in whole, at any time within the 30 days following the offering’s closing date.

In all provinces of Canada, the company will offer the offered shares through a short form prospectus, and on a private placement basis in the US. Internationally, OceanaGold will offer the offered shares based on the regulatory requirements in the relevant jurisdictions.

The company expects the bought deal offering to close on October 19, 2020. The closing will be subject to certain conditions, including approval from the Toronto Stock Exchange. 

The net proceeds of OceanaGold’s offering will go towards funding the company’s organic growth projects. These include the Haile underground development, and ongoing exploration and development of the company’s mineral properties in New Zealand.

Some funds may also go towards OceanaGold’s working capital and general corporate purposes.

OceanaGold closed 9.32 per cent in the red for $2.14 per share.

OGC by the numbers
More From The Market Herald
Gold Mountain (ASX:GMN) - CEO, Tim Cameron (centre) - The Market Herald

" Gold Mountain (ASX:GMN) finds three more drill targets at Mt Wipi

Gold Mountain (GMN) has identified more prospective drill targets at the Mt Wipi Project in Papua New Guinea.
eMetals (ASX:EMT) intersects high-grade gold at Twin Hills

" eMetals (ASX:EMT) intersects high-grade gold at Twin Hills

eMetals (EMT) has received results from drilling at the Twin Hills Project in Western Australia.
Zuleika Gold (ASX:ZAG) completes drilling at Credo

" Zuleika Gold (ASX:ZAG) completes drilling at Credo

Zuleika Gold (ZAG) has completed its 27-hole reverse circulation (RC) drilling program at the Credo Project in Western Australia.
Silver Mines (ASX:SVL) hits 1826g/t silver at Bowdens

" Silver Mines (ASX:SVL) hits 1826g/t silver at Bowdens

Silver Mines (SVL) has intersected up to 1825 grams of silver per tonne (g/t) from the Bowdens Silver Project in New South Wales