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Monday, 15th December 2008 (1564 views)

Minefinders has announced that it has closed a CN$40.02 million (£26.70 million) bought deal offering that was launched on December 2nd 2008.

The Vancouver-based mining and exploration company, which produces gold at its Dolores mine in Mexico, entered into an agreement with a syndicate of underwriters for the sale of 9,200,000 units from Minefinders for sale to the public at a price of CN$4.35 per unit.

Each unit consisted of one common share of the company and one-half of one common share purchase warrant and Minefinders has also granted the underwriters an over-allotment option.

The offering was led by Scotia Capital and BMO Capital Markets and net proceeds of the issue will be used by Minefinders to "enhance working capital, reduce indebtedness and for general corporate purposes".

Minefinders became a gold producer in November this year and predicted that it would produce over 1.7 million ounces of gold from heap-leach operations over a 15.5 year mine life.

Meanwhile, Canadian firm Red Back Mining raised CN$60 million from a share offering in order to fund capital expansion plans.

 

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