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Capstone Copper and Orion Announce C$285 Million Secondary Bought Deal Offering of Common Shares
VANCOUVER, British Columbia, March 22, 2023 (GLOBE NEWSWIRE) -- Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) and Orion Fund JV Limited, Orion Mi
About this update from Capstone Copper Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, March 22, 2023 (GLOBE NEWSWIRE) -- Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively “Orion” or the “Selling Shareholders”) jointly announce that they have entered into an agreement with a syndicate of underwriters led by National Bank Financial and Scotiabank (collectively, the “Underwriters”) under which the Underwriters have agreed to purchase, on a bought deal basis from the Selling Shareholders, 50,000,000 common shares of Capstone (“Common Shares”) at a price of C$5.70 per Common Share (the “Offering Price”), for gross proceeds to Orion of approximately C$285,000,000 (the \"Secondary Offering\"). Orion has granted the Underwriters an option, exercisable in whole or in part at any time up to 30 days after the closing of the Secondary Offering, to purchase up to an additional 7,500,000 Common Shares at the Offering Price (the “Over-Allotment Option”) which, if exercised in full, would increase the gross proceeds of the Secondary Offering to Orion to approximately C$327,750,000. The Secondary Offering is expected to close on or about March 31, 2023 and is subject to Capstone and Orion receiving all necessary regulatory approvals. The net proceeds of the Secondary Offering will be paid directly to the Selling Shareholders. The Company will not receive any proceeds from the Secondary Offering. The Secondary Offering will be made by way of a prospectus supplement to the Company’s short form base shelf prospectus dated March 1, 2023 in all of the provinces and territories of Canada (other than Quebec) (the “Prospectus Supplement”) and may be offered by way of private placement to qualified institutional buyers in the United States. As part of the Secondary Offering, Orion has agreed, subject to certain limited exceptions, not to sell any Common Shares or other securities of Capstone for a period of 150 days from the closing of the Secondary Offering. The Company has also agreed, subject to certain limited exceptions, not to issue any Common Shares or other securities of Capstone for a period of 90 days from the closing of the Secondary Offering. The Selling Shareholders currently hold an aggregate of 222,336,179 Common Shares, representing approximately 32.03% of the Company’s...