Balcatta-based Moto Goldmines Ltd has entered into an agreement with a group of underwriters to issue 5.5 million common shares in Moto to raise CAD$42 million (A$50 million).
Balcatta-based Moto Goldmines Ltd has entered into an agreement with a group of underwriters to issue 5.5 million common shares in Moto to raise CAD$42 million (A$50 million).
Balcatta-based Moto Goldmines Ltd has entered into an agreement with a group of underwriters to issue 5.5 million common shares in Moto to raise CAD$42 million (A$50 million).
The shares will be bought at a price of CAD$7.65 (A$9.10).
The proceeds will be used by Moto for exploration and development of its project in the Republic of Congo, to fund cash payments for the possible purchase of an additional joint venture interest and working capital purposes.
The underwriters are led by Haywood Securities Inc., and include BMO Nesbitt Burns and RBC Capital Markets.
At 1300 WST Moto's shares were down 12 cents to $1.74.
Moto was listed on the ASX in May last year and has a market capitalisation of $404.9 million.
Below is the full announcement:
Moto Goldmines Limited ("Moto") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Haywood Securities Inc., and including BMO Nesbitt Burns and RBC Capital Markets, who have agreed to purchase, on a bought deal basis, 5.5 million common shares of Moto at a price of CAD$7.65 per common share for aggregate gross proceeds of approximately CAD$42 million.
Moto plans to use the net proceeds of the offering for exploration and development of the Company's project in the Democratic Republic of Congo, to fund the cash payments required to complete the possible purchase of an additional joint venture interest and for working capital and general corporate purposes.
The common shares to be sold under this offering will be offered by way of a short form prospectus in each province of Canada where purchasers reside and the common shares to be sold under this offering will be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. The offering is scheduled to close on March 29, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and other applicable securities regulatory authorities.