Cline Mining Corp. has entered into an agreement to sell 27,280,000 common shares on a bought-deal basis at a price of $2.75 per common share to a syndicate of investment dealers led by TD Securities Inc., for gross proceeds of $75.02-million. In addition, Cline has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 4,092,000 common shares which, if exercised, would increase the gross offering size to $86,273,000. The offering is scheduled to close on or about June 7, 2011, and is subject to customary conditions and receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.
Net proceeds of the offering will be used to complete the development of the New Elk coal mine which includes reinstalling the steel rail spur, financing working capital and for general corporate purposes. |
