OGC-100% unhedgedOceanaGold Closes Subscription Receipt Financing (ccnm)
MELBOURNE, AUSTRALIA--(Marketwire - March 4, 2010) -
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OceanaGold Corporation (TSX:OGC)(ASX:OGC)(NZSE:OGC) (the "Company") is pleased to announce today that, in connection with its previously announced equity raising, it has closed the offering (the "Offering") of subscription receipts of the Company (the "Subscription Receipts"). In connection therewith, the Company has issued 31,164,001 Subscription Receipts (which includes 4,064,869 Subscription Receipts issued upon the exercise in full of the over-allotment option) at a price of C$2.05 for aggregate gross proceeds of approximately C$63,886,200.
The Offering was led by Macquarie Capital Markets Canada Ltd, as part of a syndicate that also included BMO Nesbitt Burns Inc. and Thomas Weisel Partners Canada Inc. (collectively, the "Underwriters").
Each Subscription Receipt will entitle the holder to receive, without payment of additional consideration or further action, one common share of the Company upon satisfaction of certain release conditions as set forth in the final prospectus, which includes the approval of the shareholders of the Company at a Special Meeting scheduled to be held on March 25, 2010. The Subscription Receipts have been listed on the Toronto Stock Exchange and will commence trading today under the ticker (TSX:OGC.R).
The Company also recently announced that it completed a conditional placement of 10,949,648 ASX listed Chess Depository Interests ("CDI's"), at a price of A$2.18 per CDI (being the Australian dollar equivalent of C$2.05) (the "Private Placement"). The Private Placement was led by Macquarie Capital Advisers Limited. The issue of the CDIs is also subject to approval by shareholders at the Special Meeting referred to above.
The gross proceeds raised by the Company under the Offering and Private Placement will be approximately C$86.3 million.
The Company intends to use the proceeds of the Offering and the Private Placement to fund the restructuring of the Company's existing gold hedging facilities. The remainder of the net proceeds (if any) are expected to be used by the Company for other working capital requirements and/or general corporate purposes as more fully described in the final prospectus.
OceanaGold CEO, Paul Bibby, commented: "We are very pleased with success of this equity offering. The offering will help to strengthen our balance sheet and we expect it to result in OceanaGold becoming a 100% unhedged gold producer in the near future. The equity offering was strongly supported by both new and current shareholders from around the globe which has further diversified our shareholder base."