NEWS ROUNDUP — Echo Bay goes to U.S., Canadian markets

Toronto-listed Echo Bay Mines has filed a shelf registration that will allow it to sell up to $US200 million in debt and equity securities from time to time.

In Canada, the company is filing one shelf prospectus that will allow it to issue 10 million common shares and a separate shelf registration for a maximum of $US125 million in debt. The money raised will be used to expand in North and South America and elsewhere.

At year-end, Echo Bay had more than $US252 million in cash and short-term investments, which more than offset its total debt of $US217 million. The debt is denominated in gold and silver bullion, which carries a much lower interest rate (about 2%) when compared with currency borrowings and deposits.