Bought Financing News
a little lower price than I'd like to see, lots of dilution - they are cashed up now until somebody takes a run to buy them out.
Intrepid Announces Bought Deal Financing for C$112 Million
Mon Nov 22, 4:19 PM
BRISBANE, AUSTRALIA--(Marketwire - Nov. 22, 2010) - Intrepid Mines Limited (TSX: IAU.TO)(ASX: IAU.AX) ("Intrepid" or the "Company") is pleased to announce that it has entered into an agreement for a bought deal financing with a syndicate of underwriters led by RBC Capital Markets (as Lead Manager and Sole Bookrunner) and Wellington West Capital Markets (as Co-Lead Manager), under which the underwriters have agreed to purchase a total of 63,400,000 Ordinary Shares, at a price of C$1.77 per Ordinary Share for gross proceeds of C$112,218,000 (the "Offering"). The syndicate of underwriters also includes Canaccord Genuity Corp, RBS Morgans and MacDougall, MacDougall & MacTier. Intrepid received financial advice from Gryphon Partners.
In addition to the Offering, Intrepid intends to undertake a share purchase plan ("SPP") under which shareholders of the Company with registered addresses in Australia and New Zealand as at the close of business on November 22, 2010 will be given the opportunity to apply for up to A$15,000 worth of shares at the Australian dollar equivalent price per share.
The net proceeds of the Offering and the SPP will be used to fund on-going exploration and feasibility studies at the Company's flagship project in Indonesia, Tujuh Bukit, and for general corporate purposes. The Offering is expected to close on or about December 10, 2010 and is subject to Intrepid receiving all necessary regulatory approvals. Closing of the Offering is not conditional upon the SPP.
Intrepid's CEO, Brad Gordon, remarked: "The proceeds generated by this equity raise will enable Intrepid to increase the level of activity at Tujuh Bukit, where we have recently announced a substantial inaugural resource for our copper/gold porphyry zone. These funds place the Company in a strong position to advance Tujuh Bukit through to the completion of key milestones, which we believe could unlock significant value for our shareholders."