Primero Mining Corp. (PPP. P.TO) announced Tuesday that it has entered into an engagement letter together with its shareholder Goldcorp Inc. (GG: Quote,G.TO: Quote) and a syndicate of underwriters.
As per the engagement agreement, the Underwriters have agreed to purchase 8.42 million common shares of Primero currently held by Goldcorp on a bought deal basis at an offering price of C$5.25 per share.
Goldcorp currently owns, as of the date hereof, 39.57 million common shares of Primero representing in the aggregate 40.9% of the issued and outstanding common shares of Primero. After giving effect to this offering, Goldcorp will own 31.15 million common shares of Primero, representing approximately 32.2% of the outstanding common shares of Primero.
Primero said it will not receive any proceeds from this offering. All of the expenses of the offering will be paid by Goldcorp. The remaining 31.15 million common shares of Primero held by Goldcorp upon completion of the offering will continue to be held by Goldcorp subject to the original three year lock-up period that commenced on August 6, 2010.
Closing of the offering is expected to occur on or about October 9, 2012 and is subject to certain conditions, including the approval of Canadian securities regulatory authorities.
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by RTT Staff Writer
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