OceanaGold to raise capital in Canada
NZX-listed OceanaGold Corporation has announced a C$93.3 million ($114.3 million) capital raising in Canada which it will use to cut its debt and fatten its operating budget.
The offer is underwritten by a group of banks, led by Citigroup and Macquarie, which will buy 30 million shares at C$3.11 each and sell them to retail investors.
Trading in OceanaGold shares has been frozen on the three exchanges it lists on - the NZX, the Toronto Stock Exchange and the ASX - while the underwriters tap the market and determine their offer price.
The underwriters will offer the shares in the Canadian provinces except Quebec, and in Australia with a short-form prospectus because those states allow such investment offers. The offering was expected to close on December 18.
OceanaGold told the NZX that the commissioning of its Didipio gold mine project in the Philippines was still on schedule.
The board was focused on lowering the company's debt to similar levels kept by other mining companies.
"Accordingly, the Company will use the net proceeds from the offer to reduce outstanding debt and to provide balance sheet and operating flexibility," OceanaGold's market statement said today.
The underwriting banks have an over-allotment option of buying up to 15 per cent of the securities additional to the 30 million shares if the demand warrants.
The offer is subject to conditions and regulatory approval, including the authorisation of the Toronto Stock Exchange.