TORONTO (miningweekly.com) – TSX- and NYSE-listed Kinross Gold on Wednesday announced that a syndicate of underwriters for its recently completed $250-million bought-deal financing had exercised their overallotment option in full to buy another 12.51-million common shares at $3 apiece, for additional gross proceeds of $37.53-million.
The Toronto-based company, which had operations in North and South America, Russia and West Africa, advised that it intended to use the net proceeds of the offering to strengthen its balance sheet and improve the long-term liquidity position of the company by using about $175-million of the net proceeds to repay the credit facilities that were used to purchase assets from Barrick Gold.
In January, Kinross completed its 100% acquisition of the Bald Mountain gold mine in Nevada, in the US, from Barrick Gold, which included a large associated land package and 50% of the Round Mountain gold mine in Nevada, for $610-million.
The remainder of the proceeds would be used to repay debt maturing in 2016 and for general corporate purposes.
The offering was made through a syndicate of underwriters co-led by TD Securities and Scotiabank.