Toronto, Canada — MININGREVIEW.COM — 19 June 2009 – Banro Corporation – a Canadian-based gold exploration company focused on the development of four wholly-owned gold projects in the Democratic Republic of the Congo (DRC) – has announced the terms of its new offering of common shares to be effected by way of a prospectus supplement.
A news release issued here confirmed that a total of 43 479 000 common shares would be distributed for aggregate gross proceeds to the company of Cdn$100 million (R707 million). The offering would be conducted through a syndicate of underwriters co-led by GMP Securities L.P. and CIBC World Markets Incorporated.
It said the company would grant the underwriters an over-allotment option to purchase additional common shares in an amount up to 15% of the number of common shares sold pursuant to the offering, exercisable at any time up to 30 days from the closing of the offering.
Closing of the offering is expected on or about 25 June 2009, and is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the NYSE.
Banro intends to use the net proceeds of the offering for advancing the company’s gold projects in the DRC – specifically on the Twangiza-Namoya gold belt – and for working capital and general corporate purposes.