IAMGOLD Corporation (TSX: T.IMG, Stock Forum) announced Tuesday that it will be looking to raise more than Cdn$300 million through a public offering.
The company first announced the offering after Monday’s market close, saying that it had filed a preliminary short form prospectus in Canada and a registration statement in the United States in connection with an overnight-marketed public offering of common shares. The company intends to sell 34.3 million common shares at $8.75 oer share, for proceeds of $300.1 million.
The offering will be conducted through a syndicate of underwriters led by Canaccord Capital Corporation and TD Securities.
The company says it has also agreed to grant the underwriters an over-allotment option to purchase more than five million common shares sold in the offering. If the over-allotment option is exercised in full, total gross proceeds to IAMGOLD will be over $345 million.
Net proceeds are expected to be used to fund the construction and development of the Essakane Project and the balance to fund capital expenditures at IAMGOLD's other properties and for general corporate purposes including future acquisition opportunities.
The Offering is scheduled to close on or about March 26.
On the company’s Bullboard Monday night, kerbacious offered the following thoughts: “Expect a 10-20% drop soon as financing dilution never favours old shareholders..Plus all the big golds are going to the market for money suggesting a top might be in.....lucky ones got out today........I expect a 8.50 financing maximum....[sic]”
Trading in shares of the company were halted late Monday.
