YAMANA GOLD Announces CDN$100 Million Equity Financingadmin
YAMANA GOLD INC. announced that it has entered into an agreement with Canaccord Capital Corporation and Scotia Capital Inc. pursuant to which the Lead Underwriters have agreed to purchase for resale to the public by the Lead Underwriters and a syndicate of underwriters, 16,700,000 common shares of Yamana on a “bought deal” basis, at a price of Cdn$6.00 per common share for aggregate gross proceeds to Yamana of Cdn$100,200,000. In addition, the Company has agreed to grant to the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 2,505,000 common shares of Yamana at a price of Cdn$6.00 per common share, on the same terms and conditions as the Offering (as defined below), exercisable any time, in whole or in part, until the date that is 30 days from the closing date of the Offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to Yamana will be Cdn$115,230,000 (the “Offering”).
The common shares to be issued under the Offering will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec.
The net proceeds from the Offering are expected to be used for ongoing operating and working capital requirements, and may be used to reduce the level of debt currently outstanding under Yamana’s revolving debt facility or for discretionary capital programs as required.
The Offering is expected to close in late December 2008 and is subject to normal regulatory approvals, including the approval of the Toronto Stock Exchange.