VANCOUVER (miningweekly.com) – Canadian gold miner Iamgold has closed a $230-million bought deal financing, with a $30-million overallotment option fully exercised, the company said Tuesday.
The miner said it had issued 44.7-million common shares at $5.15 apiece, including 5.82-million shares issued under the overallotment option.
Iamgold has previously stated that it intends to use it to fund future growth and to strengthen its balance sheet by reducing indebtedness.
It plans to use about $150-million of the net proceeds to fund a tender offer for its outstanding 6.75% senior notes.
The company advised that it would pay $970 for each $1 000 principal amount of the notes, comprising an early tender payment of $30 per $1 000 principal amount of the notes and a tender payment of $940 per $1 000 principal amount of the notes.
The rest of the net proceeds would be used to fund internal growth projects, including the expansion of the Sadiola mine, in Mali – a joint venture between Iamgold (41%), operator AngloGold Ashanti (41%) and the Mali government (18%).