Triple-listed Oceana Gold has raised $C86.3 million ($NZ123
million) in ordinary shares and chess depository interests,
which it will use to buy out its contracted forward orders
hedge book.
The ploy will allow Oceana to make the most of selling its
gold into the buoyant global spot market, as opposed to
forward hedging contracts locked into prices lower than the
daily spot prices.
Oceana raised $C63.8 million from 31.1 million ordinary
shares in Canada, where its principal listing is on the
Toronto stock exchange, and a further $C22.5 million in chess
depository interests in Australia; the latter subject to
shareholder approval.
Oceana's rebounding share price was boosted a further 6c to
$3.36 in New Zealand yesterday, after the announcement.
Craigs Investment Partners broker Peter McIntyre said the
capital-raising was "very positive" for Oceana, as it would
give it a firmer footing and open its options, such as
refunding its mothballed gold/copper development in the
Philippines.
Oceana chief executive Paul Bibby said in a statement, "The
offering will help to strengthen our balance sheet, and we
expect it to result in Oceana Gold becoming a 100% unhedged
gold producer in the near future."
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