OceanaGold closes offer of subscription receipts
OceanaGold Corporation (OGC) said it has closed the offering of subscription receipts in connection with its previously announced equity raising and as a result has issued about 31.16 million subscription receipts at a price of C$2.05 for proceeds of approximately C$63.89 million. The company said each subscription receipt would entitle the holder to receive one common share of the company upon satisfaction of certain release conditions.
OceanaGold said the subscription receipts have been listed on the Toronto Stock Exchange and would commence trading today.
The company also recently announced that it completed a conditional placement of about 10.95 million ASX listed Chess Depository Interests (“CDI’s”), at a price of $2.18 per CDI.
OceanaGold said the issue of the CDIs remains subject to approval by shareholders.
The company said the gross proceeds raised by the company under the offering and placement would be approximately C$86.3 million.
OceanaGold said it intends to use the proceeds to fund the restructuring of the its existing gold hedging facilities, while the remainder of the net proceeds are expected to be used for other working capital requirements and/or general corporate purposes as more fully described in the final prospectus.
CEO, Paul Bibby, said the company expects the offering to result in OceanaGold becoming a 100% unhedged gold producer in the near future.
”The equity offering was strongly supported by both new and current shareholders from around the globe which has further diversified our shareholder base,” Mr Bibby said.
As at 1148 AEDT, OceanaGold shares were up 2c to $2.54.
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