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Capstone Copper and Orion Mine Finance Announce C$375 Million Bought Deal
VANCOUVER, BC, Feb. 1, 2024 /CNW/ - Capstone Copper Corp. ("Capstone" or the "Company") (TSX: CS) and Orion Fund JV Limited, Orion Mine Finance Fund II LP and O
About this update from Capstone Copper Corp.
[{"type":"text","content":" VANCOUVER, BC, Feb. 1, 2024 /CNW/ - 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 RBC Capital Markets, as Lead Bookrunner and including National Bank Financial and Scotiabank as Joint Bookrunners (collectively, the \"Underwriters\") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis from the Company and Orion, a total of 59,520,000 common shares of Capstone (\"Common Shares\") at a price of C$6.30 per Common Share (the \"Offering Price\"), for aggregate gross proceeds of C$374,976,000 (the \"Offering\"). The Company has granted the Underwriters an option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 8,928,000 Common Shares from the Company at the Offering Price (the \"Over-Allotment Option\") which, if exercised in full, would increase the aggregate gross proceeds of the Offering to C$431,222,400. The Offering is expected to close on or about February 8, 2024 and is subject to customary closing conditions, including Capstone and Orion receiving all necessary regulatory approvals. In connection with the Offering, the Company will issue 47,620,000 Common Shares for aggregate gross proceeds of C$300,006,000. The Selling Shareholders will receive gross proceeds of C$74,970,000 from the secondary sale of 11,900,000 Common Shares. The net proceeds of the Offering received by Capstone will be used to advance near term growth initiatives in Chile, notably the Mantoverde Optimized Project and Santo Domingo detailed engineering, advance expansionary exploration programs, as well as for general corporate and working capital purposes to provide additional balance sheet flexibility as further described in the prospectus supplement. The Company will not receive any proceeds from the secondary sale, which will be paid directly to the Selling Shareholders. The 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...