Teranga Gold Corporation (TSX:TGZ) (ASX:TGZ) announces that it has closed its previously announced offering, on a bought deal basis, of 36,000,000 common shares at a price of C$0.83 per Share for gross proceeds to the Company of C$29,880,000. The Offering was completed through a syndicate of underwriters led by Cormark Securities Inc. and including Macquarie Capital Markets Canada Ltd., CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc, Canaccord Genuity Corp., Desjardins Securities Inc. and Jennings Capital Inc.
In connection with the Offering, the Company has also granted to the Underwriters an option to purchase up to an additional 5,400,000 Shares at a price of $0.83 per Share, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until May 31, 2014.
“In summary, this financing strengthens our balance sheet and allows us to plan and execute on our growth initiatives while reducing our vulnerability to near term gold price volatility” said Richard Young, President and CEO. “We intend to use the net proceeds of the Offering for working capital and general corporate purposes, which when combined with our existing cash position as well as cash from operations will enable us to execute on our short and medium term objectives, as disclosed in our yearend report. Specifically, this will allow us to increase reserve development expenditures to expedite the conversion of resources to reserves on our mine licenses, accelerate heap leach testing and related activities, and execute on mill optimization opportunities to potentially increase our milling rate.”
Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX:TGZ) and Australian Securities Exchange (ASX:TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
Teranga’s mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.
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