Capstone Copper (TSX:CS) has entered into a C$375 million bought deal agreement with a syndicate of underwriters as it joins the Australian Securities Exchange (ASX) via a secondary listing.
Under the bought deal, led by RBC Capital Markets as lead bookrunner, the underwriters have agreed to purchase from Capstone and its affiliates Orion Fund JV, Orion Mine Finance Fund II LP, and Orion Mine Finance (Master) 59.52 million Capstone shares at C$6.30 per share for just under C$375 million.
National Bank Financial and Scotiabank will operate as joint bookrunners to the deal alongside RBC.
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.
Capstone was admitted to the official list of the 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.
As part of the bought deal, Capstone has granted the underwriters an option to purchase up to an additional 8.928 million shares at the offer price which, if exercised in full, would increase the gross proceeds to C$431.222 million.
The offer is scheduled to close on or about 8 February this year.
Capstone says the funds from the deal will be used to advance its near-term growth initiatives in Chile — notably the Mantoverde Optimized Project and Santo Domingo detailed engineering, advanced expansionary exploration programs, and general corporate and working capital purposes.
The Orion shareholders currently hold an aggregate of close to 165 million Capstone shares, representing about 23.7% of Capstone’s issued and outstanding shares. Post offering, but before giving effect to the over-allotment option, these selling shareholders will beneficially own just under 153 million shares — 20.6% of outstanding common shares.
Capstone Copper is an Americas-focused copper miner headquartered in Vancouver, Canada.
The company’s assets include the Pinto Valley copper mine in Arizona, US, the Cozamin copper-silver mine in Zacatecas, Mexico, and 70% of the Mantoverde copper-gold mine and 100% of the Mantos Blancos copper-silver mine in the Atacama and Antofagasta regions of Chile.
Capstone’s strategy is to unlock transformational copper production growth while executing cost and operational improvements through innovation, optimisation, and safe and responsible production throughout its portfolio.
Write to Adam Drought at Mining.com.au
Images: Capstone Copper
