Guyana Goldfields closes $100m financing
TORONTO (miningweekly.com) – Toronto-listed Guyana Goldfields has closed a $100-million bought deal offering for which it has issued 29.42-million shares at a price of C$3.40 apiece for gross proceeds of about C$100-million.
The net proceeds of the offering will be used to fund the development of the Aurora gold project, in Guyana, for exploration expenditures and for general corporate purposes.
The common shares were sold pursuant to an underwriting agreement with a syndicate of underwriters led by BMO Capital Markets and including Cormark Securities, RBC Dominion Securities, Scotia Capital, Raymond James, TD Securities and Paradigm Capital.
Guyana Goldfields has also granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to buy up to 4.41-million common shares to cover overallotments, if any, and for market stabilisation purposes.
Canada-based Guyana Goldfields, which is focused on the exploration and development of gold deposits in the Guiana Shield of South America, at the end of January, filed a positive technical report for its Aurora project.
The report had found the project to hold an estimated after-tax-and-royalties net present value of $800-million at a 5% discount when using a gold price of $1 300/oz. The after-tax-and-royalties internal rate of return is 38% when using the same parameters and the mine has an expected price tag of $205-million.
The report found the mine could produce gold at a rate of 194 000 oz/y over its first 17 years, starting in 2015. In the first ten years the mine is expected to produce 231 000 oz/y and production is expected to peak at a rate of 349 000 oz/y in 2020.
The company’s shares have declined in value by 4.29% to C$3.12 apiece on Friday afternoon on the TSX.
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