logo
Plus   Neg
Share
Email

Guyana Goldfields Proposes Offering Of C$8.4 Mln Share At C$2.91/shr

Guyana Goldfields Inc. (GUY.TO) said Wednesday that it proposes to issue 8,391,069 common shares at a price of C$2.91 per share in a non-brokered private placement. The company expects aggregate gross proceeds of about C$24,418,010 from the placement.

The offering is scheduled to close on or about April 24, and is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange, and completion of definitive documentation. The shares issued upon the closing of the private placement will be subject to a 4-month hold period.

The company said it will use the net proceeds from the offering towards the strategic plans for 2012 and to continue exploration of its portfolio of gold exploration properties in Guyana.

The Baupost Group, L.L.C., a Boston, Massachusetts based institutional investor, has agreed to purchase 7,891,069 of the common shares for C$22,963,010. Upon closing of the placement, Baupost will hold approximately 18.3 percent of the company's shares and will have the right to appoint an independent director to the board of directors of Guyana Goldfields.

The company's Chief Executive Officer and Interim President, Chief Operating Officer Patrick Sheridan has agreed to purchase 500,000 of the shares for C$1,455,000.

Guyana Goldfields has initiated a revised Feasibilty Study for the Aurora Gold Project which has the potential to improve the economics of the project. The revised Feasibility Study, which will investigate oppurtunities in the underground, open pit, civil works, processing and economics, is expected to complete in the fourth-quarter.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Billionaire entrepreneur Elon Musk on Thursday showed off his concept for the Loop, a high-speed underground public transportation system that will carry up to 16 people and travel at 150 miles per hour. At the Boring Company Information Session, Musk and project leader Steve Davis provided details of the underground mass transit tunnels that the Boring Co. plans to build beneath Los Angeles. Raden has become the second smart luggage company to shut down this month after major U.S. airlines banned smart luggage with non-removable batteries earlier this year. In a statement on its website, Raden said that it is no longer in operation and that all existing shipments have been processed for delivery. The company is shuttering after three years of operation. Shares of AstraZeneca were losing around 2 percent in the London trading after the British drug major reported Friday lower profit in its first quarter amid weak margin, despite growth in product sales. Further, the company reiterated its outlook for fiscal 2018. The level of Externalisation Revenue, divestment timing and investment in launches impacted the overall results.
Follow RTT