By Susanna Moon
Chicago, Jan. 19 - CGA Mining Ltd. said it plans a private placement to sell 34 million common shares at a price of C$2.20 on a bought-deal basis.
The company said it entered into an agreement to raise C$74.8 million with a syndicate of underwriters led by BMO Capital Markets and including Haywood Securities Inc.
Underwriters have an option to purchase up to an additional 15% shares for up to 48 hours before the offering closes on Feb. 5.
Proceeds will be used to repay debt, including the company's 12% senior promissory notes, to increase exploration activity at the Masbate Gold Project and for general corporate purposes.
Based in Perth, Australia, CGA Mining, formerly Central Asia Gold Ltd., is engaged in mineral exploration and development.
| Issuer: | CGA Mining Ltd.
|
| Issue: | Common stock
|
| Amount: | C$74.8 million
|
| Greenshoe: | For 15%
|
| Shares: | 34 million
|
| Price: | C$2.20
|
| Underwriters: | BMO Capital Markets (lead) and Haywood Securities Inc.
|
| Pricing date: | Jan. 19
|
| Settlement date: | Feb. 5
|
| Stock symbol: | Toronto: CGA
|
| Stock price: | C$2.44 at close Jan. 19
|
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