TORONTO (miningweekly.com) – TSX- and ASX-listed Andean Resources will raise C$234-million in a bought-deal financing offering, the company announced on Wednesday.

Andean plans to use the funds to develop its Cerro Negro project in Argentina, and for “general working capital purposes”.

A syndicate of underwriters, with BMO Capital Markets and RBC Capital Markets as joint book runners, has agreed to buy 70-million Andean shares at C$3,35 a share.

The offering is expected to close on or about August 11.

Cerro Negro could produce an average of 200 000 oz/y of gold over a ten-year life, according to a feasibility study published earlier this month by Andean.

Cash costs are estimated at $168/oz, based on silver by-product credits of $14/oz.

An initial capital investment of $275-million would be needed to commission the project, Andean said at the time.

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