This seems to be the week that investors want to toss all kinds of money at Canadian mining companies. Let’s hope this is a trend that continues for many, many months.
On Monday, it was Osisko Mining that bumped up its unit offering to $52 million from $30 million just hours after the original announcement. And that was on top of a $30-million flow-through offering announced the same morning.
Yesterday Pretium Resources offered $90 million of unsecured convertible senior subordinated notes due in 2022. The overallotment has been exercised, bringing the total to more than $115 million. With the commissioning of the $811-million Brucejack gold mine in British Columbia imminent, this is a welcome infusion of cash.
Today Nighthawk increased its bought deal private placement to $20 million. The company is issuing approximately 10.8 million flow-through shares and 14.3 million non-flow-through units. There is also an overallotment of 1.6 million flow-through shares and 2.1 million units that may be taken up by the underwriters.
And there are probably a dozen more small financings for a few million dollars or even a few hundreds of thousands. It all adds up to renewed interest in the mineral sector.
This is good news to an industry that has had a tough time attracting investors for the last few years. We are optimistic that the newfound investor confidence will pay off for all stakeholders.