Copper miner to raise $52mn in stock sale

22 March 2009 | 11:42 Code : 18894 Geoscience events
Quadra Mining (QUA.TO: Quote) said on Friday it will raise at least C$65.1 million....

Quadra Mining (QUA.TO: Quote) said on Friday it will raise at least C$65.1 million ($52 million) in a stock sale and use the proceeds pay to down debt and to complete development of the Franke project in Chile, which Quadra is in the process of acquiring.

Quadra, which mines mainly copper, said it will sell the shares through a bought deal with a syndicate of underwriters led by Macquarie Capital Markets.
It will sell 14 million shares at C$4.65 each, a 7.3 percent discount to its price of C$5.02 on the Toronto Stock Exchange prior to the news. Quadra could raise another C$9.8 million if an over-allotment option is exercised.
After trading resumed, Quadra dropped to C$4.83, down 53 Canadian cents on the day.
Quadra agreed to buy Centenario Copper (CCT.TO: Quote) in February to acquire Franke. The all-stock deal, expected to close in May, is worth just under C$70 million at Friday’s prices.
The bought deal, which is conditional on the success of the Centenario acquisition, comes as base metals miners have struggled to raise funds due to weak metals prices and tight credit markets.
Several gold miners, in contrast, have raised funds through equity sales or debt issues in recent months.
While Quadra mines primarily copper, it also produces a modest amount of gold from its Robinson mine in Nevada. Quadra produced 160 million pounds of copper and 138,000 ounces of gold last year

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