An $18.2-million expansion program was previously announced which will include a new shaft to a depth of 2,050 ft. For the year, Campbell’s three mines are expected to produce 60,000 oz of gold and five million pounds of copper.
Financially, Campbell has excellent sponsorship. The company’s largest shareholder, Northgate Exploration (TSE), has agreed to purchase 6.5 million shares at $1 per share. If a rights offering announced by the company is fully subscribed, Northgate will hold a 22% interest in Campbell. The company is offering each shareholder the right to buy another share at 85 cents per share for each four shares already held.
Another major Campbell shareholder, Claridge Group, has indicated that it intends to purchase up to 4.4 million shares under the rights offering.
Great Lakes Capital Markets Inc, an investment banking company, has agreed to act as a standby underwriter to the rights offering and to subscribe for up to 4.7 million shares. The combined support of Northgate, Claridge and Great Lakes will provide Campbell with at least $14 million of the proposed $20 million in equity financing being sought.
The remaining part of the $40- million financing will be in the form of a $20-million loan facility. When completed, the loan will be convertible into a gold loan and will be utilized for mine expansion and general corporate purposes, Campbell says.
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