OceanaGold Corp, owner of gold mines in New Zealand, has executed a step in a previously announced $C86.3 million ($NZ122m) capital raising to fund a change the way it sells its gold.The company said it has closed an offering of subscription receipts and
OceanaGold Corp, owner of gold mines in New Zealand, has executed a step in a previously announced $C86.3 million ($NZ122m) capital raising to fund a change the way it sells its gold.
The company said it has closed an offering of subscription receipts and as a result has issued 31.16m receipts at a price of $C2.05 each to raise $C63.89m. It exercised in full an over allotment option.
The receipts become a common share in the company after approval for the capital raising is obtained at a special meeting of shareholders on March 25. The receipts are trading on the Toronto Stock Exchange under the ticker OGC.R.
OceanaGold, owner of the Macraes and Reefton gold mines, is listed in New Zealand, Australia and Toronto.
The company also recently placed 10.95m ASX-listed Chess Depository Interests at a price of $A2.18 ($NZ2.85) each conditional on shareholder approval at the special meeting.
The total raised of $C86.3m will be used to fund a move to selling gold on the spot market and for working capital.
OceanaGold wants to close out its forward gold sales contracts and gold call options and sell its gold on the spot market. At December 31 these contracts were "out of the money" by about $US89m ($NZ129).
"The offering will help to strengthen our balance sheet and we expect it to result in OceanaGold becoming a 100 percent unhedged gold producer in the near future," said chief executive Paul Bibby.
"The equity offering was strongly supported by both new and current shareholders from around the globe which has further diversified our shareholder base. "
