TORONTO – Yamana Gold has entered into an agreement to issue 29.1 million common shares at a price of $5.30 each to a syndicate of underwriters lead by Canaccord Genuity and National Bank Financial Markets. Proceeds will be $260.23 million. The underwriters have also been granted an over allotment that has the potential to bring the total to $299.26 million.
Yamana plans to use the proceeds to reduce its debt position, strengthen the balance sheet and for general corporate purposes. The goal is to keep the company in a strong position as gold prices fluctuate and to allow it to move forward on its projects in the pipeline.
The offering is expected to close Feb. 3, 2015, subject to necessary regulatory approvals.
CMJ readers might want to review Yamana’s fact sheet available at Yamana.com.