This week was quite a bit busier for private placements than last, with two high-profile bought deals from big players leading the pack. Read on for details on those two deals, as well as a smaller financing from a junior gold company.
1. OceanaGold Corp. (TSX: OGC; AGX OGC)
- Gross Proceeds: $150 million (bought deal)
- Sector: Precious metals
- Units issued: 73 million
- Type: Common shares
- Price: $2.06
- Warrants: None
- Agents: Scotiabank, BMO Capital Markets
- Use of Proceeds: Ongoing exploration and development
- Press release
Australian gold producer OceanaGold Corp. (TSX: OGC; AGX OGC) announced a whopping $150 million bought deal on Tuesday.
The company plans to issue 73 million common shares at $2.06 to a syndicate of underwriters led by Scotiabank and BMO Capital Markets. It has also granted the underwriters an over-allotment option to purchase up to an additional 10.95 million common shares for 30 days following the close of the deal.
OceanaGold says it plans to use the proceeds for its Haile underground development in South Carolina, for exploration of its properties in New Zealand, and for working capital.
OceanaGold recently updated its technical report of the Haile mine with an estimate that supports an after-tax net-present value of US$892 million at a gold price of $1500 an ounces, or US $1.05 billion at the "market-consensus" gold price. The company also increased the deposit's proven and probable gold reserves by 60,000 ounces, measured and indicated resources by 120,000 ounces, and inferred resources by 40,000 ounces.
Shares of OceanaGold are down 52 cents for 2020, and have dropped 17 cents since announcing the bought deal.
2. WELL Health Technologies Corp. (TSX: WELL)
- Gross Proceeds: $70 million (bought deal)
- Sector: Precious metals
- Units issued: 10.37 million
- Type: Common shares
- Price: $6.75
- Warrants: None
- Agents: Eight Capital, Stifel GMP
- Use of Proceeds: Continued acquisitions
- Press release
Healthcare tech company WELL Health Technologies Corp. (TSX: WELL) announced a $70 million bought deal on Thursday.
The company plans to issue 10.37 million common shares at $6.75 each through a syndicate of underwriters led by Eight Capital and Stifel GMP. It has also granted an over-allotment option to buy another 15% of the offering for 30 days after it closes.
WELL plans to use the proceeds for further acquisitions as it continues to consolidate digital healthcare companies and clinical providers under its umbrella.
Shares of WELL are up $5.41 for 2020, and down 23 cents since announcing the bought deal.
Read our full article on the deal here.
3. Aurania Resources Ltd. (TSX-V: ARU)
- Gross Proceeds: $10 million
- Sector: Precious metals
- Units issued: 2.33 million
- Type: Units
- Price: $4.30
- Warrants: Half; $5.50; Two years
- Agents: Cantor Fitzgerald Canada Corporation
- Use of Proceeds: Ongoing exploration
- Press release
Toronto-based gold explorer Aurania Resources Ltd. (TSX-V: ARU) announced a $10 million offering on Thursday, underwritten by a group of underwriters led by Cantor Fitzgerald Canada Corporation.
The company plans to issue 2.33 million special units at $4.30 each. Each unit will consist of a common share and a half warrant, with full warrants exercisable at $5.50 for two years. It has also granted the underwriters an over-allotment option to purchase up to an additional 349,500 units.
Aurania plans to use the proceeds for ongoing exploration at its Lost Cities – Cutucu project in Ecuador, and for initial exploration at its property in Peru.
Aurania began drilling the Tsenken N2 target at Lost Cities in September, with results expected soon.
Trade volume for Aurania is often quite low, but saw a spike after the company announced its latest offering. Shares of the company are up 31 cents to $4.43 per share on Friday afternoon, and down 75 cents since arranging the private placement.
