Toronto-based cathode copper producer Arimetco International (TSE) is raising US$24.9 million for future acquisitions and for development of properties under its control.
Midland Walwyn Capital and Scotia McLeod have agreed to underwrite the financing and will purchase 5.25 million special warrants priced at $4.75 each. The special warrants can each be exchanged for one common share of Arimetco before August 5, 1992.
Subject to regulatory approval, the transaction is scheduled to close April 21. Proceeds will be held in escrow until the receipts for a final prospectus have been received from all regulatory authorities.
On the day the financing was announced, Arimetco was the most active resource issue on the Toronto Stock Exchange with 347,280 changing hands. The shares fell 13 cents to $5 where they trade in a 12-month range of $5.38 and $2.75. Chairman Roy Shipes said part of the proceeds will be used to develop the McArthur copper property in Nevada and for a feasibility study at Breakwater Resources’ (TSE) Caribou zinc mine property in New Brunswick. “We are positioning ourselves to take advantage of opportunities as they arise,” said Shipes.
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