Through a proposed public offering of 3.2 million units, Agnico- Eagle Mines (TSE) will raise $27.6 million for its exploration and development projects. The units, offered on a “bought deal” basis by the underwriting firms of RBC Dominion Securities, Wood Gundy and Dean Witter Reynolds (Canada) at $8.625 per unit, consist of one common share and a one-half common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of Agnico at $9.125 within two years of closing.
In June, Agnico cancelled a $40-million offering because the company’s share price had dropped too low — from $12.88 in January to $7.88. Since Iraq’s invasion of Kuwait, higher gold prices have given Agnico shares a slight boost. Agnico recently traded at $8.50,
Agnico says it will soon file a preliminary prospectus relating to the offering in all the provinces. The units will be for sale in Canada and Europe.
This represents the company’s first public financing since 1972, President Paul Penna points out, all previous funding having been arranged by him personally.
Be the first to comment on "Agnico raises $27.6 million for projects"