Gold hopeful CGA Mining plans to raise nearly $31 million from Canadian investors as Platinum Australia becomes the latest miner to enter a trading halt pending the release of capital raising details.
Gold hopeful CGA Mining plans to raise nearly $31 million from Canadian investors as Platinum Australia becomes the latest miner to enter a trading halt pending the release of capital raising details.
CGA announced this morning that it has engaged Haywood Securities to act as agent to offer 15 million CGA shares at $C1.25 each to raise $C18.75 million ($A23 million) to investors.
The company said the placement will run in parallel to a separate capital raising of a further $C6.25 million ($A7.7 million), with shares also priced at $C1.25 each.
"The Company will have the option to request, until two business days prior to the Closing of the Offering, that the Offering be increased by an amount, up to a maximum of C$6.25 million which the Company does not sell pursuant to the Concurrent Offering, and Haywood will act as agent for such increased amount of the Offering," CGA said.
Funds raised together with existing cash reserves and the $US80 million senior debt facility will be applied towards the construction of CGA's Masbate gold project in the Philippines.
Meantime, Platinum Australia has requested a trading halt pending the negotiation of a capital raising.
Shares in the company last traded at 59 cents.
CGA's announcement is below:
CGA Mining Limited (TSX Code: CGA; ASX Code: CGX) ("CGA", "the Company") is pleased to announce that it has engaged Haywood Securities Inc ("Haywood") to act as agent, on a best efforts basis, for an offering of 15,000,000 ordinary shares at C$1.25, for aggregate gross proceeds of C$18.75 million ("the Offering"). The Offering will be made to "accredited investors". The proceeds, in combination with existing cash reserves and the US$80 million senior debt facility arranged by BNP Paribas (as announced May 26, 2008), are proposed to be utilised to supplement working capital during mine commissioning and to complete funding the construction of the Company's Masbate Gold Mine in the Philippines.
CGA also plans to undertake a concurrent non-brokered private placement of a further 5 million ordinary shares, also at C$1.25 per share (or A$1.55 equivalent) for aggregate gross proceeds of C$6.25 million (or A$ equivalent) (the "Concurrent Offering"). The ordinary shares will have the same terms as the ordinary shares sold under the Offering. The Company will have the option to request, until two business days prior to the Closing of the Offering, that the Offering be increased by an amount, up to a maximum of C$6.25 million which the Company does not sell pursuant to the Concurrent Offering, and Haywood will act as agent for such increased amount of the Offering.
Both the Offering and the Concurrent Offering are subject to any required regulatory approval and are expected to close on or about February 9, 2009.
