Timmins Gold (TSX:TMM) said Wednesday it will sell C$25 million ($22.7 million) in equity to a syndicate of banks. According to a report in Reuter, the deal “designed to strengthen its balance sheet, builds on a wave of offerings that may signal a thaw in the financing environment for miners, which have long been out of favor with investors.”
As quoted in the market news:
The bank syndicate, led by RBC Capital Markets, will buy the shares at C$1.50 each, a significant discount to Timmins’ closing price of C$1.73 on the Toronto Stock Exchange on Tuesday. The transaction was done as a bought deal.