Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


OceanaGold to raise up to C$108M in new equity

OceanaGold to raise up to C$108M in fully underwritten discounted share issue

Dec. 4 (BusinessDesk) - OceanaGold, which operates the Macraes gold mine near Dunedin, plans to raise up to C$108 million in a fully-underwritten share issue to repay debt and bolster its balance sheet.

The Melbourne-based company has agreed to sell 30 million shares to a syndicate of underwriters for some C$93 million, with an option to buy up to an extra 15 percent, it said in a statement. The underwriters will then sell the Chess Depositary Notes to the public in Canadian provinces except Quebec.

The CDIs' equivalent Australian price is A$3 a share, an 8.3 percent discount to their last trading price. Investors in other jurisdictions, including Australia, will be able to subscribe to the offer through private placements.

"While commissioning at the Didipio project remains on schedule with the commencement of milling last week, the board remains focused on maintaining more prudent gearing levels in line with industry peers," OceanaGold said. "The company will use the net proceeds from the offer to reduce outstanding debt and to provide balance sheet and operating flexibility."

The underwriting syndicate is led by Citigroup Global Markets Canada and Macquarie Capital Markets Canada, and includes Cormark Securities, GMP Securities and BMO Capital Markets.

In October, the gold miner cut its forecast annual production and said it faces higher costs for extracting the precious metal from the ground. The company made a loss of US$397,000 in the three months ended Sept. 30, from a profit of US$10.9 million in the same quarter a year earlier.

The company's triple-listed shares were unchanged at $4.10 in New Zealand, having rallied 49 percent this year.

The offer is subject to certain conditions, including the approval of the Toronto Stock Exchange.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news