SASKATCHEWAN - Saskatoon's SHORE GOLD is raising $100 million, much of which will go toward exploration and development of its Star kimberlite project 50 km east of Prince Albert. Of the 18.2 million common shares that Shore is offering, NEWMONT MINING CORP. OF CANADA has agreed to subscribe for 8.95 million.
The shares are offered at a price of $5.50 each, for gross proceeds of $100.1 million. Shore has granted underwriters an option to purchase an additional 3.0 million shares at the same price up to 48 hours prior to closing. Newmont would pick up an additional 297,000 shares under terms of the expanded offering, bringing its investment in Shore to 9.9%.
Detailed information about the Star project is posted at www.ShoreGold.com.
Both offerings are subject to certain conditions such as necessary regulatory approvals and the okay of the Toronto Stock Exchange.