Business
Rusoro Mining Ltd. raises CDN $210 million for acquisition of Gold Fields Venezuelan assets
Rusoro Mining Ltd. raises CDN $210 million for acquisition of Gold Fields Venezuelan assets.
About this update from Rusoro Mining Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO A US NEWSWIRE SERVICE OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES/\n\n\nTrading symbol (TSX-V): RML\n\n\nVANCOUVER, Oct. 12 /CNW/ - Rusoro Mining Ltd. ("Rusoro") is pleased to\nannounce that it has entered into an underwriting agreement with a syndicate\nof underwriters co-led by Canaccord Adams Limited and GMP Securities and\nincluding PI Financial pursuant to which Rusoro's to be formed wholly owned\nsubsidiary Rusoro Mining BVI Ltd. (Rusoro BVI) will sell 87,500,000\nsubscription receipts at a price of $2.40 per subscription receipt to raise\ngross proceeds of CDN $210 million in Rusoro BVI (the "Offering"). Rusoro has\ngranted the underwriters an option to purchase up to an additional 6,250,000\nsubscription receipts of the Company at any time until 48 hours prior to the\nclosing of the Offering.\n\n\nThe Offering is being undertaken to fund the acquisition of certain\nVenezuelan mining assets, including the Choco-10 gold mine, from Gold Fields\nNetherlands Services BV, a wholly owned subsidiary of Gold Fields Limited (the\n"Acquisition"). It is anticipated that the Acquisition will be effected by way\nof a merger of Rusoro, Rusoro BVI and GF MergeCo, a subsidiary of Gold Fields\nNetherlands Services BVI which will hold the Venezuelan assets.\n\n\nUpon completion of the Acquisition, each Rusoro BVI subscription receipt\nwill be exchanged for one Unit consisting of one common share and one share\npurchase warrant of Rusoro BVI Each warrant will entitle the holder to\npurchase one common share of Rusoro BVI at a price of $4.00 per common share\nfor five years following the effective date of the Acquisition. The Rusoro BVI\nshares and warrants comprising the Units will then be exchanged for Rusoro\nshares and warrants having equivalent terms.\n\n\nThe Offering is expected to close on or about October 31, 2007. The gross\nproceeds of the Offering will be held in escrow pending closing of the\nAcquisition.\n\n\nCompletion of the Offering is subject to a number of conditions,\nincluding TSX Venture Exchange acceptance. There can be no assurance that the\ntransaction will be completed as proposed or at all.\n\n\nThe TSX Venture Exchange has in no way passed upon the merits of the\n\n\nproposed transactions and has neither approved nor disapproved the\n\n\ncontents of...