Deals this week: Klondex Mines, Golden Star Resources, Compania Minera Milpo


Klondex Mines has announced that it is offering a syndicate of underwriters 22.9 million subscription receipts priced at C$5 ($3.8) each to raise approximately C$114.5m ($87.02m) under a bought private placement deal. 

The deal is expected to close by 18 August 2016. Net proceeds from the offering are intended to be used to fund the acquisition and replacement of reclamation bonds currently in place with US and Nevada regulators, for exploration growth at the Hollister Mine and Esmeralda Mine, which will also be developed.

Golden Star Resources (GSR) has priced the private placement of its convertible senior notes worth $65m due 2021, for an interest rate of 7% a year, which will be payable semi-annually on 1 February and 1 August. This is due to begin in 2017.

"The two holders will exchange approximately $40m of the outstanding convertible debentures."

Under the transaction, GSR has entered exchange and purchase agreements with two holders of its 5% convertible senior unsecured debentures due on 1 June 2017.

The two holders will exchange approximately $40m of the outstanding convertible debentures for an equal principal amount of the newly issued notes.

The deal is expected to close on 3 August.

Compania Minera Milpo has entered a non-binding letter of intent (LoI) to acquire an 80% interest in the Huajoto property from Alturas Minerals in exchange for $2m.

The property covers an area of 4,129ha, hosting a zinc-gold-copper-rare earth element project. It is located 22km north-west of the historical mining town Huancavelica in central Peru.