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Capstone Copper and Orion Announce Closing of C$328 Million Secondary Bought Deal Offering of Common Shares
VANCOUVER, British Columbia / Mar 31, 2023 / Business Wire / Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) and Orion Fund JV Limited, Orion Mine
About this update from Capstone Copper Corp.
[{"type":"text","content":"VANCOUVER, British Columbia / Mar 31, 2023 / Business Wire / 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 the closing of the previously announced secondary bought deal offering (the “Secondary Offering”) of common shares of Capstone (“Common Shares”). Pursuant to the Secondary Offering, the Selling Shareholders sold an aggregate of 57,500,000 Common Shares at a price of C$5.70 per Common Share for aggregate gross proceeds to the Selling Shareholders of C$327,750,000. The Secondary Offering included 7,500,000 Common Shares sold pursuant to the exercise in full by the Underwriters (as defined below) of the over-allotment option granted to the Underwriters by the Selling Shareholders. The Secondary Offering was made pursuant to an underwriting agreement dated March 24, 2023 among Capstone, the Selling Shareholders and a syndicate of underwriters co-led by National Bank Financial and Scotiabank (collectively, the “Underwriters”). The net proceeds of the Secondary Offering were paid directly to the Selling Shareholders. The Company did not receive any proceeds from the Secondary Offering. The Secondary Offering was made by way of a prospectus supplement dated March 24, 2023 to the Company’s short form base shelf prospectus dated March 1, 2023 in all of the provinces and territories of Canada (other than Québec) and 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 57,500,000 Common Shares sold by the Selling Shareholders in the Secondary Offering represented approximately 8.28% of the issued and outstanding Common Shares on a non-diluted basis. Prior to the Secondary Offering, the Selling Shareholders beneficially owned an aggregate of 222,336,179 Common Shares, representing approximately 3...