Market Herald logo

Subscribe

Be the first with the news that moves the market
  • OceanaGold (OGC) has received C$17,613,000 in additional proceeds, thanks to a partially exercised over-allotment option
  • Underwriters of the company’s previous bought deal equity financing bought 8.55 million more common shares at $2.06 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 (OGC) is up 0.50 per cent, and is currently trading for $2.00 per share

OceanaGold (OGC) has received C$17,613,000 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 offering price of $2.06, the company estimated that it would raise approximately C$150 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 bought deal offering, OceanaGold granted the underwriters the option to buy up to 10.95 million additional common shares in the company, at the offering price. The underwriters could only take advantage of the option within the 30 days which immediately followed the offering’s closing date.

Today, the underwriters partially exercised and concluded this over-allotment option. They did so by purchasing 8.55 million more common shares, at the offering price of $2.06 each.

Just like the initial amount raised through the bought deal offering, the extra $17,613,000 in proceeds 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 OceanaGold’s working capital for general corporate purposes.

OceanaGold (OGC) is up 0.50 per cent, trading for $2.00 per share as of 9:44am EDT.

More From The Market Herald

Scratching the surface of an emerging gold belt in Canada

Westhaven Gold Corp. (TSXV:WHN) is a Canadian exploration company that has four gold projects along the Spences Bridge Gold Belt in B.C.

This stock is ready to capture the lead in the diabetes market

Diabetes specialist Glucotrack (NASDAQ:GCTK) has changed its business strategy to transition to continuous glucose monitoring.

@ the Bell: Markets soften on Cyber Monday

Mounting losses endured by the industrial, energy, and mining sectors pressured Canada’s main stock index to a lower close on Cyber Monday.

@ the Bell: TSX flatlines

Canada’s main stock index continued its flatline trend from the previous two sessions into Friday. The TSX was split between gains and losses