Lundin Gold completes bought-deal financing

On August 9, 2016, Lundin Gold Inc. closed the second tranche of its bought-deal equity offering of 15 million common shares at a price of $5.50 per share.

The underwriters exercised their over-allotment option in full and purchased 2.25 million additional common shares, representing 15 per cent of the total offering, at the offering price. Combined, the aggregate gross proceeds raised under the offering was $94,875,000. The first tranche of Lundin Gold’s offering, consisting of 10 million shares, closed on July 19, 2016. The offering was conducted through a syndicate of underwriters led by GMP Securities LP and including BMO Nesbitt Burns Inc., Dundee Securities Ltd., Pareto Securities AS, Cormark Securities Inc., Paradigm Capital Inc. and Scotia Capital Inc.

The net proceeds of the offering are being used to fund the Early Works program at the Fruta del Norte Project, basic engineering and optimization of capital cost estimates at the Fruta del Norte Project and general corporate purposes. An aggregate of US$8 million from the closing of the first tranche was used to repay in full amounts owing under Lundin Gold’s credit facility.

Blake, Cassels & Graydon LLP represented Lundin Gold with a team that included Peter O’Callaghan, Trisha Robertson, Kyle Misewich and Michael Stewart.

Cassels Brock & Blackwell LLP represented the underwriters with a team that included Chad Accursi, Afzal Hasan, Jonathan Sherman and James Morand.


Peter J. O'Callaghan Chad Accursi James G. Morand