Tahoe launches financing deal
- Publishing Date
- 07 Dec 2010 12:03pm GMT
- Author
- Mining Journal
Silver miner Tahoe Resources Inc plans to raise C$306 million (US$305 million) to fund development of the Escobal project in Guatemala.
Tahoe will raise the funds through a bought-deal financing with a syndicate of underwriters led by GMP Securities LP. The underwriters have agreed to purchase almost 22 million shares at C$14.10/share.
The company’s top shareholder, Goldcorp Inc, has indicated it will subscribe to sufficient shares to maintain its 41.2% ownership.
Goldcorp sold the project to Tahoe in May for US$505 million in a deal consisting of US$253 million in cash and the majority stake.
The underwriters will be granted an over-allotment option to purchase an additional 3.3 million shares at the offering price. This would provide the company with a further C$46 million.
Tahoe said it would also use the funds for acquisitions and general corporate purposes. The offering is expected to close on December 24.
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