Fortuna Silver Mines Inc. secured a US$40 million bought-deal financing for working capital related to the startup of the Lindero gold operation in Argentina and for general working capital.
Construction of the open pit Lindero mine was 47% complete as of mid-May, according to the company's first quarter report.
Fortuna said Sept. 10 that the financing comprises senior subordinated unsecured convertible debentures priced at US$1,000 apiece. The debentures will mature on Oct. 31, 2024, and will bear interest at an annual rate of 4.65%, payable semiannually in arrears on the last day of April and October in each year starting April 30, 2020.
Debentures may be converted into common shares at US$5 per share, subject to adjustment in certain circumstances.
The bought-deal agreement is with a group of underwriters co-led by CIBC Capital Markets and Scotiabank, with closing anticipated on or about Oct. 2. The deal includes an overallotment option for up to an additional US$6 million aggregate principal amount of debentures, exercisable within 30 days following closing.
