On March 8, 2010, OceanaGold Corporation (TSX:OGC)(ASX:OGC)(NZSE:OGC) announced that it had closed its previously announced subsription receipt offering, issuing 31,164,001 subscription receipts of the company (which includes subscription receipts issued upon the exercise in full of the over-allotment option) at a price of $2.05 for aggregate gross proceeds of approximately $63,886,200.
The offering was led by Macquarie Capital Markets Canada Ltd, as part of a syndicate of underwriters that also included BMO Nesbitt Burns Inc. and Thomas Weisel Partners Canada Inc.
Each subscription receipt will entitle the holder to receive, without payment of additional consideration or further action, one common share of the Company upon satisfaction of certain release conditions as set forth in the final prospectus, which includes the approval of the shareholders of the Company at a Special Meeting scheduled to be held on March 25, 2010. The Subscription Receipts have been listed on the Toronto Stock Exchange and commenced trading on March 8 under the ticker (TSX:OGC.R).
OceanaGold also recently completed a conditional placement of 10,949,648 ASX listed Chess Depository Interests ("CDI's"), at a price of A$2.18 per CDI (being the Australian dollar equivalent of $2.05). The private placement was led by Macquarie Capital Advisers Limited. The issue of the CDIs is also subject to approval by shareholders at the Special Meeting referred to above.
The gross proceeds under the offering and private placement will be approximately $86.3 million.
OceanaGold intends to use the proceeds of the offering and the private placement to fund the restructuring of the company's existing gold hedging facilities. The remainder of the net proceeds (if any) are expected to be used by the company for other working capital requirements and/or general corporate purposes as more fully described in the final prospectus.
OceanaGold was advised in these two transactions by Fasken Martineau with a team that included, among others, Georald Ingborg, Benjamin Lee and Caroline Clapham.