RE:RE:Inquire about notice of AGM ?ukermann;
Now that's a real deal, selling shares @ $4.00 while trading @ $3.10 !
Just shows you what is possible ? Continental Gold sells shares to Newmont at $4 each
2017-05-11 09:37 ET - News Release
Mr. Ari Sussman reports
CONTINENTAL GOLD ANNOUNCES STRATEGIC INVESTMENT BY NEWMONT MINING AND INVESTMENT BY RK MINE FINANCE
Newmont Mining Corp. has agreed to purchase 37.38 million common shares of Continental Gold Inc. at a price of $4 per share for a total investment of $109-million (U.S.) in a non-brokered private placement. Concurrently with Newmont's investment in Continental, RK Mine Finance Master Fund I Ltd. (Red Kite) has also agreed to purchase 8.59 million common shares of the company on a private placement basis at a price of $4 per share for a total investment of $25-million (U.S.), as contemplated in Continental's secured project credit facility with Red Kite. After giving effect to the private equity placements, Newmont and Red Kite will own approximately 19.9 per cent and 4.6 per cent, respectively, of the issued and outstanding common shares of Continental on a non-diluted basis. The private placements will not close before May 18, 2017, after receipt of regulatory approvals, including by the Toronto Stock Exchange.
Ari Sussman, chief executive officer of Continental, commented: "After completing a formal process in which a number of alternatives (including multiple equity financing offers) were evaluated, we are pleased to be welcoming Newmont and Red Kite as investors in Continental. Newmont is our first choice for a cornerstone investor with its best-in-class balance sheet, excellent operating team, and recent track record of delivering projects on schedule and under budget. We look forward to capitalizing on Newmont's experience to successfully kick off formal construction at the Buritica project later this year. With Newmont as a partner and the completion of this financing, Continental will be well positioned to build Buritica and create significant value for our shareholders with first gold pour on track for early 2020."
In connection with the Newmont private placement, Newmont and Continental have entered into a binding investment agreement, the provisions of which include:
- A standstill until the Buritica project goes into commercial production;
- A 12-month lock-up on share dispositions;
- Participation rights in any future equity financings to maintain pro rata ownership interest;
- Backstop rights to subscribe for any unsold portion of future equity financings;
- A right of first offer for any non-equity financing greater than $30-million;
- The formation of joint management technical, exploration and sustainability committees;
- One seat for a Newmont nominee on the Continental board of directors.
Newmont and Continental will also form a strategic alliance to evaluate opportunities to partner on exploration of Continental's other properties in Colombia.
The capex of $389-million (U.S.), outlined in the 2016 feasibility study for the Buritica project, will be fully funded with $403-million (U.S.) of available cash and debt allocated. The company intends to use the proceeds of Newmont's investment to develop the Buritica project, and such proceeds satisfy the financing condition required to draw the second tranche of $100-million (U.S.) under the Credit Facility. Additional financing, if required, may be fulfilled through equipment lease financing, exercise of outstanding warrants and other non-dilutive alternatives (see attached table).
(in millions of U.S. dollars) Capex for Buritica project (March, 2016, feasibility study) $389 Financing completed Cash position (Jan. 1, 2017) $19 Red Kite credit facility $250 Equity financing with Newmont and Red Kite $134 Total $403 Potential future financing alternatives Warrants at $4.75 expiring Nov. 25, 2017 (if exercised in full) $20 Warrants at $3.67 (U.S.) expiring Jan. 10, 2021 (if exercised in full) $11 Equipment lease financing Up to $30 Other non-dilutive financing alternatives Negotiable
RBC Capital Markets is acting as financial adviser to the Continental board of directors in connection with the Newmont private placement.
About Continental Gold Inc.
Continental Gold is an advanced-stage exploration and development company with an extensive portfolio of 100-per-cent-owned gold projects in Colombia. Formed in April, 2007, the company is focused on advancing its fully permitted high-grade Buritica gold project to production with first gold pour on track for early 2020.