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Efficiency|Gold|Mining|Maintenance
Efficiency|Gold|Mining|Maintenance
efficiency|gold|mining|maintenance

Jaguar Mining to raise $25m in equity offering

19th June 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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The share price of TSX-listed Jaguar Mining rose 42% on Tuesday, following a proposed nonbrokered private placement in which the company will seek to raise up to $25-million.

The shares would be offered at a discounted C$0.085 each, the Brazil-focused gold junior said, noting that its last closing price prior to the announcement was C$0.12 a share. The stock closed at C$0.17 apiece on Tuesday.

Investor Eric Sprott and New York-based Tocqueville Asset Management, intend to participate in the offering. Sprott would subscribe for at least $15-million, which would increase his shareholding to 21.17% and Tocqueville intends to purchase at least 19.6% of the offering for nearly $5-million.

“The Offering represents an opportunity for Jaguar Mining to remedy its operating issues at its Turmalina mine and as a result, improve its overall production profile, operating efficiency and cost structure,” commented Sprott in a statement.

Jaguar interim CEO Benjamin Guenther said that the proceeds from the offering would be used to make “overdue” changes to the company and its otherwise “rich and robust, yet historically underperforming mineral properties”.

The Canadian junior’s main operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina gold mine complex and Caeté mining complex. The company also owns the Paciência gold mine complex, which has been on care and maintenance since 2012 and the Roça Grande mine, which has been on care and maintenance since April last year.

Edited by Creamer Media Reporter

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