Cambior lines up $90 million for Poderosa

Cambior (CBJ-T) has inked a syndicate of underwriters to a $90-million bought deal, with proceeds destined for the cash portion of its previously announced acquisition of a 55.3% interest in Peruvian-based miner Compaia Minera Poderosa.

The group led by Sprott Securities, and including Dundee Securities, BMO Nesbitt Burns, National Bank Financial, CIBC World Markets, Scotia Capital, Orion Securities, Paradigm Capital and Haywood Securities, have agreed to buy 24 million units at $3.75 apiece. Each unit includes one share plus half a purchase warrant. One warrant is good one share at $4.35 per share for two years. The underwriters have also been granted an option on another 5.3 million like-priced units.

The offering is slated to close by Oct. 14, and is subject to regulatory approval.

Earlier this month, Cambior inked a deal to buy an initial 55.3% stake in Compaia Minera Poderosa from a group of private shareholders for US$25 million in cash accompanied by 2.2 million shares. The deal also includes a possible payment of US$6 million subject to resolution of outstanding tax legislation (T.N.M., Sep. 13-19/04).

The Poderosa mine has produced 1.25 million oz. of gold since 1982, and currently churns out about 100,000 oz. per year at a projected cash cost of US$175 per oz.