Freshly listed company Capstone Copper (ASX:CSC) has closed a C$431 million bought deal with a syndicate of underwriters.
Capstone Copper, Orion Fund JV, Orion Mine Finance Fund II LP, and Orion Mine Finance (Master) Fund I-A LP jointly announce the closing of the bought deal offering common shares of Capstone by a syndicate of underwriters co-led by RBC Capital Markets, National Bank Financial, and Scotiabank, as joint bookrunners. This also includes BMO Capital Markets, Canaccord Genuity, and CIBC World Markets.
A bought deal is a financial underwriting contract which occurs when an underwriter, such as an investment bank or syndicate, purchases securities from an issuer before a preliminary prospectus is filed.
As reported by Mining.com.au, Capstone, which is headquartered in Vancouver, Canada, granted the underwriters an option to purchase up to an additional 8.928 million shares at the offer price which would increase the gross proceeds to C$431.222 million.
Capstone has agreed, subject to certain limited exceptions, not to sell any common shares or other securities of the company for a period of 90 days from the closing of the offering.
Net proceeds from the deal will be used to advance the near term growth initiatives at the Mantoverde Optimised Project in Chile, South America, and for expansionary exploration programs.
The deal has been completed following Capstone’s admission to the official list of the Australian Securities Exchange (ASX) as an ASX Foreign Exempt Listing on 31 January 2024.
A foreign exempt listing is available to companies that are already listed on another stock exchange with a ‘significant’ profit history or ‘significant’ net tangible assets, according to Baker McKenzie Resource Hub.
Capstone Copper is an America-focused copper miner headquartered in Vancouver, Canada. The company owns and operates the Pinto Valley copper mine in Arizona, US, the Cozamin copper-silver mine in Zacatecas, Mexico, and the Mantos Blancos copper-silver mine in the Antofagasta region of Chile.
Write to Adam Drought at Mining.com.au
Images: Capstone Copper
