VANCOUVER (miningweekly.com) – Base metals miner Hudbay Minerals has signed an agreement with a syndicate of underwriters to raise up to C$278.76-million on a bought deal basis.
The Toronto-based miner has agreed to issue 24-million shares, at C$10.10 each, to raise C$243.4-million.
However, an overallotment option will enable the underwriters to buy a further 3.6-million shares to cover overallotments and for market stabilisation purposes, for gross proceeds of C$278.76-million.
Hudbay said it plans to use the funds to advance its current growth projects, enhance its financial flexibility to pursue other growth opportunities, and to reduce debt, as well as for general corporate purposes.
The offering is scheduled to close on or about September 27, subject to certain conditions.