Placer fills its treasury (December 06, 2004)

Vancouver — Placer Dome (PDG-T) is strengthening its bank balance through its largest-ever underwritten equity offering.

The financing, 18.5 million shares priced at US$22 apiece, will generate US$407 million in proceeds, plus US$59.4 million if underwriters exercise their option for a further 2.7 million shares for any over-allotments.

The lead underwriters are CIBC World Markets and Scotia Capital, and several other major investment firms are participating.

A portion of the funds will likely be used to fund new project development.

Placer reported US$641 million in cash and cash-equivalents in its recent quarterly report.