Shore Gold raises $100m

Vancouver — Diamond explorer Shore Gold (SGF-V) has lined up a $100-million financing, which will see Newmont Mining (NEM-N) take down about half the issue.

The bought-deal equity financing, arranged through a syndicate of underwriters led by Genuity Capital Markets, entails the sale of 18.2 million Shore Gold shares priced at $5.50 apiece. The underwriters can sell an additional 3 million shares on the same terms up to 48 hours prior to closing.

Newmont has agreed to subscribe to 8.9 million shares of the offering and will buy an additional 297,000 shares should the underwriters’ option be exercised. Following the financing, Newmont will own 9.9% of Shore Gold. The move represents the gold giant’s first real foray into diamond territory.

The funds will be used to explore and develop the Star kimberlite project in central Saskatchewan.

At presstime Shore Gold was trading at $7 on a high volume of 5 million shares.