• Mining company OceanaGold (OGC) has entered into an agreement with a syndicate of underwriters to raise approximately C$150 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 (OGC) is down 2.20 per cent and is currently trading at $2.00 per share

Mining company OceanaGold (OGC) has entered into an agreement with a syndicate of underwriters to raise approximately C$150 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 a price of C$2.06 per offered share.

The offer will result in aggregate gross proceeds of C$150.38 million. 

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 Canadian provinces except Quebec, 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 (TSX). 

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 (OGC) is down 2.20 per cent and is trading at $2.00 per share at 10:31am EDT.

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