South Atlantic cashes up for Zinkgruvan deal

Lundin Group company South Atlantic Ventures (SAA-V) has priced the share offering that will finance its purchase of the Zinkgruvan zinc mine in Sweden from Rio Tinto (RTP-N).

A syndicate led by GMP Securities will offer 18 million shares in South Atlantic on a best-efforts basis at $8 per share, for gross proceeds of $144 million. An option lets the agents (GMP, plus BMO Nesbitt Burns, Haywood Securities, and Macquarie North America) increase the size of the offering by a further 2 million shares within 30 days of the offering’s closing date.

That closing date is scheduled for June 2, and is currently awaiting the approval of securities regulators and the TSX Venture Exchange. A final short-form prospectus was filed in five provinces for the offering.