VANCOUVER, March 8, 2017 /CNW/ - Leagold Mining Corporation (TSX-V: LMC) ("Leagold" or the "Company") is pleased to announce today that it has completed its previously announced offering of 63,640,000 subscription receipts (the "Subscription Receipt Offering") at an issue price of C$2.75 per subscription receipt for aggregate gross proceeds of C$175,010,000. The net proceeds of the Subscription Receipt Offering will be used to fund a portion of the purchase price to acquire the Los Filos gold mine from Goldcorp Inc., as previously announced, and will be held in escrow pending completion of the acquisition. Leagold is continuing to progress the other elements of its financing plan to fund the Los Filos acquisition, namely the US$150 million five-year term loan and US$50 million equity private placement which is intended to be undertaken at an issue price of C$2.75 per common share, as previously announced.
Effective at the opening, Wednesday, March 8, 2017, the Subscription Receipts will commence trading on the TSX Venture Exchange ("TSX-V") with the symbol LMC.R. Leagold advises that its common shares, symbol LMC, will remain halted from trading on the TSX-V until further notice.
Each Subscription Receipt will entitle the holder thereof to receive one common share, without payment of additional consideration or further action, upon closing of the Los Filos acquisition. The Subscription Receipt Offering is being led by BMO Capital Markets and UBS Securities Canada Inc. and includes Scotia Capital Inc., Canaccord Genuity Corp., GMP Securities L.P. and TD Securities Inc. (the "Underwriters"). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Subscription Receipt Offering, to purchase additional subscription receipts in an amount equal to 15% of the Subscription Receipt Offering, to cover over-allotments, if any.
The securities referenced in this release have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Leagold Mining Corporation
Leagold aims to build a new mid-tier gold producer with a focus on opportunities in Latin America. Leagold is based in Vancouver, Canada and is listed on the TSX Venture Exchange under the trading symbol "LMC", with its Subscription Receipts related to the Los Filos acquisition listed on the TSX Venture Exchange under the trading symbol "LMC.R".
