In a bought deal agreement with a syndicate of underwriters, Quadra Mining (QUA-T) will raise C$75.3 million that it will use to refinance existing project debt, compensate project contractors, and complete the development of the Franke project, which will be added to its portfolio following Quadra’s proposed acquisition of Centenario Copper (CCT-T).
The syndicate will buy 16.2 million shares at a price of C$4.65 per share for gross proceeds of C$75.33 million.
The offering is conditional on the completion of Quadra’s acquisition of Centenario Copper, which it first announced in early February. The offering is expected to close by April 16.
The underwriters, led by Macquarie Capital Markets Canada and including Raymond James, BMO Capital Markets, GMP Securities and Paradigm Capital, have an over-allotment option to purchase up to an additional 2.4 million shares at the offering price, for a further C$11.29 million.
News of the offering sent Quadra’s shares down 37¢ or 6.9% to close at C$4.99 per share, with 2.1 million shares changing hands. (The stock has traded in a 52-week range of C$1.97-$27.)
Vancouver-based Quadra has arranged a committed senior secured credit facility in the amount US$37.5 million.
Quadra’s principal assets are the Robinson copper-gold mine near Ely, Nevada, the Carlota copper mine in Arizona, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland.
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