Capstone Copper, a company focused on copper mining in the Americas, and affiliates of Orion Mine Finance have announced a bought deal with a syndicate of underwriters led by RBC Capital Markets.
The underwriters agreed to buy 59.52 million shares at C$6.30 ($4.71) each, amounting to nearly C$375m.
This offering is due to close around 8 February 2024, pending regulatory approvals.
The company plans to issue 47.62 million common shares to raise aggregate gross proceeds of C$300.006m.
Concurrently, selling shareholders are set to receive C$74.97m from the secondary sale of 11.9 million common shares.
Capstone Copper intends to use the net proceeds from the offering to propel growth initiatives in Chile, particularly the Mantoverde Optimized Project, and to fund detailed engineering for the Santo Domingo Project.
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Further investment will be channelled into expansionary exploration programmes.
The funds will also support general corporate and working capital needs, providing additional balance sheet flexibility.
In 2021, Capstone Mining merged with Mantos Copper to create Capstone Copper.
The combined business is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange.
