Golden QueenMining Co. Ltd. said July 14 that it signed a binding agreementwith a syndicate of investment dealers led by Cormark Securities Inc., underwhich the underwriters agreed to purchase — on a bought-deal basis — 8,970,000Golden Queen units at C$1.45 each for a total of C$13 million.
The agreement details the terms of the financing the minerannounced a day earlier.
Each unit comprises 1 common share and 0.5 of a sharepurchase warrant, with a whole warrant exercisable for 1 common Golden Queenshare at C$2.00 for a 36-month period after closing.
The miner also granted the underwriters the option topurchase an additional 1,345,000 units at the same offering price, adding aboutC$2 million to the proceeds if exercised in full.
Golden Queen plans to use the proceeds as partial repaymentfor loans due in December and for general corporate purposes.
The financing is expected to close on or about July 25,subject to approvals; the company and the underwriters anticipate signing aformal underwriting agreement to replace the binding agreement on or about July18.