Leagold Mining Corporation (TSX-V: LMC.H) has filed a preliminary prospectus in connection with its proposed distribution of subscription receipts. The underwriting syndicate is led by BMO Nesbitt Burns Inc., the lead-left bookrunner, and includes UBS Securities Canada Inc. as a joint bookrunner.
Fasken Martineau DuMoulin LLP and Blake, Cassels & Graydon LLP act as legal counsels to Leagold and the underwriters respectively.
Leagold entered a binding sale and purchase agreement with Goldcorp Inc. dated January 11, 2017 to acquire the Los Filos Gold Mine for US $350 million (all figures in US dollars) through the purchase of Goldcorp’s Desarrollos Mineros San Luis S.A. de C.V. subsidiary. The purchase price is made up of $279 million in cash and $71 million in common shares of Leagold.
Leagold intends to pay the cash portion of the acquisition from the net proceeds from the offering and the net proceeds from up to $200 million of term loan credit facilities. Leagold has appointed UBS AG, Stamford Branch and UBS Securities LLC as the lead arranger and bookrunner, and an affiliate of BMO as joint arranger and bookrunner.
The Los Filos Mine is one of Latin America’s largest gold mines with 2015 production of 272,900 ounces, and 9 months to September 30, 2016 production of 194,000 ounces at an AISC/oz of $854. The Mine currently consists of two open-pit mines, Los Filos and El Bermejal, an underground mine at Los Filos and the opportunity to develop an underground mine at El Bermejal as an expansion project.
photo credit: Goldcorp