FTAA, or more appropriately a license to act loonie---how to drive business out of your economy/country; it seems the market is perceiving this oddball demand of Oceanaphilippines as dilutive which it is, but money goes to pay off bank debt---maybe, we hope so.
VANCOUVER, BC, April 25, 2024 /PRNewswire/ - OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) ("OceanaGold" or the "Company") announces that it will raise 6.08B (approximately US$106M1) through an Initial Public Offering ("the Offering") of 20% of the common shares of its wholly-owned subsidiary, OceanaGold Philippines, Inc. ("OGPI") on the Philippines Stock Exchange ("PSE"). OGPI holds the Company's interest in the Didipio Mine and, pursuant to the terms of the renewed Financial or Technical Assistance Agreement ("FTAA"), is required to list its common shares on the PSE. The Offering is a secondary offering of common shares, with the proceeds to be received by a wholly-owned subsidiary of OceanaGold.
The final Offering price will be 13.33 per share, which was determined by the market through a book-building process involving international and Philippines institutional investors. The retail offer period will run from April 29, 2024 to May 6, 2024, with listing of OGPI on the PSE expected on May 13, 2024.
Available proceeds from the offering, net of fees and taxes, are expected to be applied to the repayment of OceanaGold's drawn bank debt. The Company had drawn bank debt of $135M at December 31, 2023.