McWatters eyes $25m for Val d’Or deals

McWatters Mining (MWA-T) has agreed to sell 125 million shares for 20 apiece to a syndicate of underwriters led by National Bank Financial. The deal will raise $25 million in proceeds.

McWatters will buy Barrick Gold‘s (ABX-T) East Malartic mill, 20 km west of Val d’Or, Que., plus land immediately around the mill and elsewhere along the Cadillac-Larder Lake break. As part of that deal, Barrick will subscribe to 29 million of the shares.

Similarly, McWatters has agreed to issue $14 million worth of shares at 20 apiece to Soquem to cover part of its proposed acquisition of the Quebec Crown corporation’s 40% stake in the Sigma-Lamaque mine and mill complex.

The balance of the Sigma acquisition comprises $20 million in cash on closing and $2 million two years later. On closing, McWatters will also issue Soquem $2.8 million worth of shares to repay previous advances.

The deal’s underwriters have been granted an option, exercisable prior to closing, in early April, to buy an additional 25 million shares at the same price. Also available for a month after closing is an over-allotment option for another 22.5 million shares.