Proceeds are earmarked for advancement of La Arena gold oxide project
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Jan. 20 - Rio Alto Mining Ltd. said it settled a private placement of stock. The deal priced for C$50.02 million with a C$7.5 million greenshoe on Dec. 23 and raised C$57.52 million.
The company sold 28.06 million common shares at C$2.05 per share on a bought-deal basis. Of the shares, 3.66 million were part of the fully exercised greenshoe. The price per share represents a 10.87% discount to the Dec. 22 closing share price of C$2.30.
The deal was conducted by an agent syndicate led by GMP Securities LP and including Scotia Capital Inc., Clarus Securities Inc. and Stonecap Securities Inc.
Anthony Hawkshaw, director and chief financial officer, told Prospect News that some of the funds would be used to make a payment on an acquisition - the equivalent of $47.55 million, he said.
"So we'll have a little bit [left over] to put into the ground," he said.
"I feel pretty good [about the completion of the financing]," he added. "I think it's a good deal for investors and I think it's going to be a good deal for us."
Proceeds will be used to advance the La Arena gold oxide project and for general corporate purposes.
Rio Alto is a mining company in Vancouver, B.C.
| Issuer: | Rio Alto Mining Ltd.
|
| Issue: | Common shares
|
| Amount: | C$57,523,000 (including C$7,503,000 greenshoe)
|
| Shares: | 28.06 million
|
| Price: | C$2.05
|
| Warrants: | No
|
| Agents: | GMP Securities LP (lead), Scotia Capital Inc., Clarus Securities Inc. and Stonecap Securities Inc.
|
| Pricing date: | Dec. 23
|
| Settlement date: | Jan. 20
|
| Stock symbol: | TSX Venture: RIO
|
| Stock price: | C$2.30 at close Dec. 22
|
| Market capitalization: | C$200.01 million
|
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