Torex 350 million production financing
Torex Gold Resources arranges $350-million financing
2012-10-01 15:24 ET – News Release
Mr. Fred Stanford reports
TOREX ANNOUNCES C$350 MILLION BOUGHT DEAL FINANCING
Torex Gold Resources Inc. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy, on a bought-deal basis, by way of a short form prospectus, 175 million units, with each unit consisting of one common share and one-quarter of one common share purchase warrant, at a price of $2 per unit, for gross proceeds of $350-million. Each whole common share purchase warrant will entitle the holder to purchase one common share of the company at a price of $2.65 prior to the date that is 12 months following the closing of the offering. The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the offering to cover overallotments, if any. The offering is expected to close on or about Oct. 23, 2012, and is subject to the company receiving all necessary regulatory approvals.
The net proceeds of the offering will be used to finance the development of the Morelos gold project and for general corporate purposes.
