Greenshoe exercised in full; proceeds slated for Cerro Moro project
By Devika Patel
Knoxville, Tenn., Sept. 28 - Extorre Gold Mines Ltd. said it settled a C$40.5 million private placement of stock via a syndicate of underwriters led by Canaccord Genuity Corp. and including TD Securities Inc., BMO Nesbitt Burns Inc., GMP Securities Inc., Salman Partners Inc. and Dahlman Rose & Co. The deal priced for C$30.26 million with a C$10.24 million greenshoe on Sept. 13.
The company sold 9.1 million common shares at C$4.45 per share on a bought-deal basis. The price per share represents a 0.89% discount to the Sept. 27 closing share price of C$4.49.
"The money will be for drilling," said Rob Grey, vice president of corporate communications, in an interview with Prospect News. Grey added that the funds could be used for other projects as the company nears production.
Grey said there are currently four drills going at the Cerro Moro project in the Santa Cruz Province, Argentina, and costs are about C$2 million a month. As such, he expected the capital would last for some time going forward.
He, however, also noted that Extorre would likely look to raise more funds for the project in the first or second quarter of 2011.
Based in Vancouver, B.C., Extorre is a gold exploration company.
| Issuer: | Extorre Gold Mines Ltd.
|
| Issue: | Common stock
|
| Amount: | C$40,495,000
|
| Shares: | 9.1 million
|
| Price: | C$4.45
|
| Warrants: | No
|
| Agent: | Canaccord Genuity Corp. (lead), TD Securities Inc., BMO Nesbitt Burns Inc., GMP Securities Inc., Salman Partners Inc. and Dahlman Rose & Co.
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Toronto: XG
|
| Stock price: | C$4.49 at close Sept. 27
|
| Market capitalization: | C$326.88 million
|
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