McWatters raises more cash (May 26, 2003)

The underwriters of a public equity offering have exercised an over-allotment option, netting McWatters Mining (MWA-T) another $639,200 in proceeds.

In early April, McWatters issued 136.2 million treasury shares at 20 per share to raise $27 million. Most of the proceeds went to Quebec Crown corporation Soquem in return for its 40% minority stake in the company’s Sigma-Lamaque gold mine in Quebec (T.N.M., April 28/03).

As part of the deal, the underwriters were granted an over-allotment option on 20.4 million shares also fixed at 20 each. The offer was to have closed on May 8, and 3.4 million shares had been sold by presstime.

Also, McWatters will issue 170,000 non-assignable options to the underwriters. The options expire in two years and can be exercised at 27 apiece.

McWatters now has just over 444 million shares outstanding.