$100-million financing to fund debt repayment, expanded operations, explorations
Gammon Gold Inc. (GAM-T9.90----%) plans a $100-million (U.S.) bought-deal financing to raise money to fund debt repayment, expanded operations explorations, and general corporate expenses.
A syndicate of underwriters led by BMO Nesbitt Burns and UBS Securities Canada Inc. have agreed to purchase 11 million common shares of Gammon at $8.90 per share.
Gammon has also given the underwriters an option to purchase an additional 1.7 million shares up to 30 days after the closing of the offering which is expected around Oct. 22 this year.
Gammon is a Nova-Scotia based mid-tier gold and silver producer with properties in Mexico.
Its flagship Ocampo Project in Chihuahua state achieved commercial production in January, 2007. It also runs the El Cubo operation in Guanajuato State and has the Guadalupe y Calvo development property in Chihuahua state
Recently Gammon said it would be relocating its executive offices to Toronto to be closer to the core of the Canadian mining industry. It's non-executive team will remain at its current head office in Halifax though.
Gammon shares closed at $9.90 Tuesday on the Toronto Stock Exchange.
Wednesday, 7 October 2009
Gammon plans bought-deal financing
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