TORONTO (miningweekly.com) – Canadian miner Copper Mountain Mining on Monday launched a C$30-million equity financing, the proceeds of which it intends to use for building a secondary crusher to lift output at its flagship asset in British Columbia.

The TSX-listed company said it would issue 17.7-million shares at a price of C$1.70 apiece, and had entered into an agreement with National Bank Financial as lead underwriter on behalf of a syndicate of underwriters to be formed.

The underwriters also had the option to increase the size of the offering by up to 2.65-million shares at any time until 30 days following the December 3 closing of the offering, for total potential proceeds of $34.60-million.

Laurentian Bank Securities metals and mining analyst Christopher Chang noted that while the equity share dilution was significant, the uncertainty surrounding the capital structure of financing the secondary crusher had been removed.

“We believe the near-term share price weakness represents a very attractive buying opportunity for investors. We are maintaining our ‘buy’ recommendation but decreasing our target price to $3.15, from $3.40 a share. Our ‘buy’ rating is supported by the company’s compelling valuation and operational turnaround,” he said in a note to clients.

Copper Mountain reported significantly improved earnings in the third quarter ended September 30, on the back of record output from its eponymous flagship asset.

Copper Mountain said earnings attributable to shareholders rose 60% year-on-year to C$11.22-million, or C$0.11 a share, compared with C$7.02-million, or C$0.07 a share, a year earlier. Adjusted earnings rose to C$447 137, or nil per share, compared with a loss of C$2.97-million, or C$0.03 a share. On average, analysts had expected adjusted earnings of C$0.04 a share on revenues of C$61.10-million.

Revenues rose 42% year-on-year to C$67.61-million.

The company’s TSX-listed stock fell 8.11% on the bourse on Monday, trading at C$1.70 apiece.