Cambior, Soquem to raise $140m

Gold-producer Cambior (TSE) and Soquem are going to the market with an offering to raise $140 million.

Cambior, based in Val d’Or, Que., and Soquem, the Quebec Crown exploration company, have concluded an agreement with a group of underwriters for the sale of 10 million units at $14 per unit. The underwriters were led by RBC Dominion Securities and Levesque Beaubien Geoffrion.

Each unit will consist of one common share of Cambior and one-half warrant. Of the 10 million shares included in the units, six million will constitute a new issue by Cambior and four million will be sold by way of a secondary distribution by Soquem. With a 17.5% interest, Soquem is Cambior’s largest shareholder.

One warrant will entitle the holder to acquire one share of Cambior at $15.50 per share by June 30, 1995. Of the five million shares underlying the warrants, about 2.6 million will be reserved for issue by Cambior and about 2.4 million will be reserved by Soquem for sale from its remaining holdings of Cambior shares.

Assuming the full exercise of all warrants by June 30, 1995, Soquem will have disposed of all its common shares of Cambior.