Gold miner Cambior (CBJ-T), which recently completed a return to profitability after a hedging book gone wrong in 1999, is a bit thicker in the wallet after a group of underwriters led by Sprott Securities and including National Bank Financial and Scotia Capital decided to exercise its option and buy another 7.5 million special warrants at $1.30 each.
The deal generated gross proceeds of $9.75 million for Cambior.
Each special warrant entitles the holder to one Cambior share plus half a share purchase warrant. One warrant is exercisable into one share at $1.70 within a year.
Earlier this month, the same syndicate bought about 13.8 million special warrants at the same price for gross proceeds of $18 million. Under that deal, the group had the option to purchase up to an additional 9.2 million special warrants at the same terms for additional gross proceeds of up to $12 million.
Together the deals generated gross proceeds of $27.8 million, which will be added to Cambior’s working capital.
Despite taking a US$5.4-million writedown on its Omai gold mine in Guyana, Cambior recently posted fourth-quarter earnings of US$12.1 million (or 12 per share) on revenue of US$52.4 million, compared with a loss of US$101.7 million ($1.35 per share) on US$52.9 million in the fourth quarter of 2000. The recent quarter’s profit was the first quarterly profit for Cambior since July-September 2000.
At the end of 2001, Cambior’s cash and equivalents amounted to US$15 million.
Cambior’s shares have staged a comeback during the first two months of 2002, climbing from about 70 to $1.26, down 6 from their previous close, in mid-afternoon trade on the Toronto Stock Exchange on Feb. 27. The stock trades in a 52-week range of 48 to $1.43.
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