Money Again Flows In Mining Sector As Multiple Producers Close On Financings

Money appears to be flowing in the mining sector again, with two large producers announcing the closing of financings this morning.

The first to announce the close of fundraising was IAMGOLD Corp (TSX: IMG), whom raised US$300 million via a bought deal financing. Priced at US$4.17 per share, the offering was led by National Bank, BMO Capital Markets, and RBC Capital Markets. The funding round resulted in the issuance of 72.0 million shares.

The financing will see the company use the funds to repurchase a 9.7% interest in the Cote Gold Mine from Sumitomo Metal Mining Co, which upon closing will bring its total ownership in that project back to 70%. Funds raised from the financing are expected to be placed into an interest-bearing account until the transaction is completed later this year.

READ: Golden Cariboo Looks To Raise $2.5 Million To Support Further Exploration

Hudbay Minerals (TSX: HBM) was the next producer to close on significant capital this morning. The offering, also a bought deal financing, was led by RBC Capital Markets and BMO Capital Markets. The financing, which saw the full exercise of an over-allotment option, raised the company US$402.5 million, via the issuance of 42.37 million shares at a price of US$9.50 per each.

Proceeds from that financing are to be used for near-term growth initiatives, which is to include the acceleration of mine pre-stripping activities and mill optimization at the firms Copper Mountain operation. Funds are also earmarked to be used towards debt repayments and the evaluation of mill throughput enhancement options at Constancia and New Britannia.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

IAMGOLD Extends Westwood Complex Life Of Mine To 2032

IAMGOLD (TSX: IMG) has extended the life of its Westwood mine complex after the completion...

Thursday, December 5, 2024, 09:01:27 AM

Metalla Royalty Acquires Royalty At IAMGOLD Cote Gold Project

Metalla Royalty & Streaming (TSXV: MTA) this morning announced that it has acquired another net...

Thursday, June 17, 2021, 07:33:39 AM

IAMGOLD Sees Fatality Occur At Essakane Operation

IAMGOLD (TSX: IMG) has lost an employee at its Essakane mine, found in Burkina Faso,...

Friday, November 25, 2022, 09:05:25 AM

IAMGOLD Records US$334.0 Million In Revenue, US$9.6 Million Net Loss In Q2 2022

IAMGOLD Corporation (TSX: IMG) reported on Wednesday its financial results for Q2 2022, highlighting revenue...

Thursday, August 4, 2022, 10:52:36 AM

IAMGOLD: Analysts Lower Price Targets Following Q4 Prelim Results

Yesterday, IAMGOLD Corp (TSX: IMG) released their preliminary operating results for the fourth quarter and...

Thursday, January 21, 2021, 11:53:00 AM