TORONTO (miningweekly.com) – Aspirant midtier gold miner Leagold Mining has raised C$175-million as part of its acquisition of the Los Filos gold mine, in Mexico, from Goldcorp.
The company offered 63.64-million subscription receipts at an issue price of C$2.75 each, with the funds being held in escrow pending completion of the acquisition.
Vancouver-based Leagold advised that it is continuing to progress the other elements of its financing plan to fund the Los Filos acquisition, namely the $150-million five-year term loan and $50-million equity private placement, which is intended to be undertaken at an issue price of C$2 per common share.
Effective Wednesday, the subscription receipts started trading on the TSX-Venture Exchange, with the symbol LMC.R. Leagold advised that its common shares, symbol LMC, will remain halted from trading on the TSX-V until further notice.
Each subscription receipt will entitle the holder to receive one common share, without further payment or further action on closing of the Los Filos acquisition.
The subscription receipt offering is being led by underwriters BMO Capital Markets and UBS Securities Canada and includes Scotia Capital, Canaccord Genuity, GMP Securities and TD Securities. Leagold also made provision for the underwriters to buy more receipts in an amount equal to 15% of the subscription receipt offering, to cover over-allotments, if any.