Sherwood greenshoe partially exercised, lifting 5% convertibles to C$43.6 million

By Jennifer Chiou

New York, March 30 - Canada's Sherwood Copper Corp. announced that underwriters exercised C$3.6 million of the C$6 million over-allotment option to augment its issue of 5% convertible senior debentures to C$43.6 million.

On Feb. 8, the Vancouver, B.C.-based copper and gold mining company priced C$40 million of the five-year convertibles at an initial conversion premium of 30%.

The debentures were offered at par.

BMO Capital Markets was the lead underwriter of the Regulation S offering.

As already reported, the debentures have an initial conversion price of C$6.30 per share. Sherwood Copper common stock closed at C$4.85 on Feb. 8.

Sherwood added that the net proceeds from the exercise of the over-allotment option will be used to complete the development of its high-grade Minto copper-gold project in the Yukon Territory, to continue the aggressive exploration of the Minto property for additional high-grade reserves as well as the acceleration of the phase 2 expansion to 2,400 metric tons per day and for general corporate purposes.

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