Western U.S. gold producer Pegasus Gold (TSE) recently reached an agreement with brokers Burns Fry, Nesbitt Thomson, Goldman Sachs and Bunting Warburg for a secondary issue of 3.25 million common shares on a bought-deal basis.
Priced at $21.25, the shares will be marketed in Canada and Europe with a closing on or before Oct. 15. The deal includes an option to purchase an additional 500,000 shares on the same basis.
Pegasus expects to gross $69.1 million from the sale of the shares plus an additional $10.6 million if the full option is exercised.
Not including the 500,000 share-option, the company will have over US$100 million in working capital following the issue.
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