The syndicate will be led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 6 250 000 ordinary shares, at a price of $20.00 per Common Share for gross proceeds of C$125 million.
Endeavour Mining 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% of the offering to cover over-allotments, if any.
The offering is expected to close on or about 111 July, 2016 and is subject to Endeavour Mining receiving all necessary regulatory approvals.
The net proceeds of the offering are intended to be used to accelerate Endeavour Mining’s organic growth potential by significantly expanding the current exploration programmes in a long-term strategic exploration initiative leveraging Endeavour’s high-quality West-African exploration portfolio, for the potential development of the Ity (picture shown above) CIL project and for general corporate purposes.
The proceeds will also assist in maintaining a healthy balance sheet over the medium term with a sound liquidity position while implementing this organic growth strategy.
As part of the Offering, La Mancha Holding S.àr.l. will be purchasing a minimum of $15 million Common Shares on the same terms and conditions. The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada, excluding Quebec and may also be offered by way of private placement in the United States and distributed internationally, as permitted.