Deals this week: Guyana Goldfields, TMAC Resources, Lundin Gold


Hope

Guyana Goldfields has reached an agreement with a group of underwriters led by BMO Capital Markets, Scotiabank and RBC Capital Markets, to raise approximately C$130m ($99.94m) through a bought deal public offering.

Under the agreement, Guyana Goldfields will offer underwriters 13.83 million common shares, priced at C$9.40 ($7.22) each, which includes one million common shares issued by Patrick Sheridan, the founding shareholder.

Proceeds from the offering will primarily be used to fund the expansion of the Aurora gold project in Guyana.

TMAC Resources and Resource Capital Fund VI L.P (RCF) have entered an agreement to raise C$100m ($76.86m) in bought deal offering of approximately 6.6 million common shares.

TMAC is offering 5.3 million common shares, while RCF is offering 1,325,000 common shares. Shares are priced at C$15.10 ($11.60) each.

Newmont Mining Corporation (Newmont) has agreed to purchase 1,159,000 common shares, with the rest bought by underwriters led by BMO Capital Markets.

The transaction is expected to close on or before 19 July. RCF has also granted underwriters an option to purchase an additional 15% of the offering to cover any over-allotments within 30 days following the closure of the offering.

TMAC intends to use the proceeds from the offering to fund the development of its Hope Bay gold project, for exploration and development of the BTD Zone at Doris, and for general corporate purposes.

"Proceeds from the offering will increase to $72.93m if the option is exercised."

Lundin Gold (formerly Fortress Minerals) has agreed to raise C$55m ($42.28m) through a bought deal offering of 10 million common shares priced at C$5.50 ($4.22) each to a group of underwriters led by GMP Securities.

The underwriters have also been granted an over-allotment option, exercisable in whole or in part, to purchase up to an additional 2,250,000 shares, representing 15% of total shares offered, within 30 days following closure of the offering. Proceeds from the offering will increase to C$94.87m ($72.93) if the option is exercised.

The offering is expected to close in two or more tranches, with the first tranche expected by 19 July 2016.

Vanstar Mining Resources has signed a non-binding letter of intent with Merrygold Investments to wholly acquire the Cristalina Gold Project located in Goias, Brazil, in exchange for C$45,000 ($34,471.4) and a 2% net smelter royalty (NSR) of which 1% can be bought back by Vanstar for C$0.50m ($0.38m).

The transaction is expected to close on 30 September, with Vanstar then transfering operatorship of the project to a Brazilian subsidiary, which will be 90% owned by a Canadian subsidiary of Vanstar.


Image: TMAC Resources is developing the Hope Bay Gold Mine in Canada. Photo: courtesy of Timkal.