Roxgold (ROG-V) arranges $10-million bought-deal placement
July 12, 2013 - News Release
Roxgold Inc. has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc., and including Macquarie Capital Markets Canada Ltd., Toll Cross Securities Inc., GMP Securities LP, Jennings Capital Inc. and Raymond James Ltd., pursuant to which the underwriters have agreed to purchase 25 million common shares of the company on a bought-deal private-placement basis at a price of 40 cents per common share, for aggregate gross proceeds of $10-million. The company will pay the underwriters a cash commission equal to 5.0 per cent of the gross proceeds of the offering.
The offering is scheduled to close on or about Aug. 1, 2013, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The company intends to use the net proceeds of the offering to advance the Yaramoko permit and further exploration at the property, as well as for general working capital purposes.
"We are pleased by the level of support demonstrated by the syndicate of underwriters," commented John Dorward, president and chief executive officer of Roxgold. "The proceeds will facilitate an efficient transition into our bankable feasibility study, as well as support an active exploration program at Bagassi South, where we have already seen encouraging results in recent drilling."
The common shares to be issued in connection with the offering will be subject to a four-month hold period.
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