McWatters Mining (MWA-T) has agreed to sell a total of 125 million shares for 20 apiece for gross proceeds of $25 million to a syndicate of underwriters led by National Bank Financial.
As part of McWatters’ deal to buy Barrick Gold‘s (ABX-T) East Malartic mill, about 20 km west of Val d’Or, (and land immediately around the mill and elsewhere along the Cadillac-Larder Lake break) the major will subscribe to 29 million of the shares.
Similarly, McWatters has agreed to issue another $14 million worth of shares at 20 each to Quebec government-owned Soquem to cover part of its proposed acquisition of Soquem’s 40% stake in the Sigma-Lamaque mine and mill complex.
The balance of the Sigma acquisition comprises $20 million in cash on closing plus $2 million two years later. On closing, McWatters will also issue Soquem about $2.8 million worth of shares to repay previous advances.
All three deals are expected to close in early April.
The deal’s underwriters have been granted an option, exercisable prior to closing, to buy an additional 25 million shares at the same price. Also available for a month after closing is an over-allotment option for another 22.5 million shares.
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