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OceanaGold raises $C115m in equity raising

Fuseworks Media
Fuseworks Media

Wellington, Oct 6 NZPA - Australia-based OceanaGold, which operates mines in Otago and Reefton, raised gross proceeds of $C115 million ($NZ151.5m) through an equity raising.

Underwriters had confirmed orders for 33m special warrants to acquire common shares and Chess Depository Interests in the company, OceanaGold said today.

The offering was being privately placed with institutional investors in Australia, Canada and internationally at an offering price of $C3.50, representing an 8.85 percent discount to the last close on the Toronto Stock Exchange of $C3.84 and an 8.29 percent discount to last close on the Australian Securities Exchange of $A3.86.

OceanaGold said it intended to use the net proceeds from the offering to fund a portion of the capital spending needs, estimated at $US140m ($NZ187.5m), for the development of the Didipio gold and copper project in the Philippines.

Some would also be used for future capital and exploration spending associated with extending mine life in this country, and some would be for general working capital requirements.

The company was considering options for the rest of the Didipio capital expenditure.

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