logo
Share SHARE
FONT-SIZE Plus   Neg

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations. Google is planning to significantly expand a carpool service on its navigational app Waze, according to a report in the Wall Street Journal. The move indicates the company is edging closer to a potential clash with ride-hailing service Uber Technologies Inc. Private equity firm Sycamore Partners has won the bankruptcy auction for the e-commerce business and intellectual property of U.S. women's apparel retailer The Limited with a bid of $26.8 million, Reuters reported, citing people familiar with the matter. A U.S. bankruptcy court judge must now approve the sale to Sycamore Partners.
comments powered by Disqus
Follow RTT