Canadian Mining Journal


CORPORATE FINANCE – Six companies raise $600M

No matter what a company mines or where, investors are practically throwing money at companies that are asking for ...

No matter what a company mines or where, investors are practically throwing money at companies that are asking for it. In the first eight days of February, CMJ found six companies that were raising a total of over $600 million.

ELDORADO GOLD of Vancouver completed a Cdn$186.3 million financing. It plans to use the money for the acquisition of late-stage development gold properties in China as well as exploration and development at its properties in Turkey and Brazil. (

NEW GOLD of Vancouver grossed a little over $75.0 million in its latest bought deal financing, substantially more than the $50.4 million it hoped to raise. The net proceeds will finance underground and surface exploration programs and development of the New Afton and Ajax copper-gold projects near Kamloops, B.C. (

NOVAGOLD RESOURCES of Vancouver sold 13.0 million common shares for a total of $164 million. Proceeds of this offering will be used to fund exploration and construction at the Rock Creek gold project (Alaska); to complete final feasibility studies for both the Galore Creek gold-copper (B.C.) and the Donlin Creek gold (Alaska) projects; to fund the 2006 option payment due with respect to the Galore Creek project; to fund exploration on the Ambler copper-zinc-silver project (Alaska), to fund exploration on NovaGold’s other projects and for general corporate purposes. (

SKYE RESOURCES of Vancouver anticipates raising $21 million this month. The company is advancing its Fenix nickel laterite project in Guatemala. INCO LIMITED has the right to participate in this financing to maintain its 12.4% equity interest in Skye. (

SXR URANIUM ONE of Toronto has more than doubled the size of its financing to US$149 million from US$65 million. The proceeds will be used for development of the brownfield Dominion uranium project in South Africa. Production is expected in 2007. (

US GOLD of Lakewood, Colorado, boosted its recent offer to US$75.15 million from US$50.4 million, thanks to an over-allotment. Part of the money is earmarked for work at its Tonkin Springs gold mine in the Cortez Trend. (

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