Triple-listed Oceana Gold has raised $C86.3 million ($NZ123 million) in ordinary shares and chess depository interests, which it will use to buy out its contracted forward orders hedge book.
The ploy will allow Oceana to make the most of selling its gold into the buoyant global spot market, as opposed to forward hedging contracts locked into prices lower than the daily spot prices.
Oceana raised $C63.8 million from 31.1 million ordinary shares in Canada, where its principal listing is on the Toronto stock exchange, and a further $C22.5 million in chess depository interests in Australia; the latter subject to shareholder approval.
Oceana's rebounding share price was boosted a further 6c to $3.36 in New Zealand yesterday, after the announcement.
Craigs Investment Partners broker Peter McIntyre said the capital-raising was "very positive" for Oceana, as it would give it a firmer footing and open its options, such as refunding its mothballed gold/copper development in the Philippines.
Oceana chief executive Paul Bibby said in a statement, "The offering will help to strengthen our balance sheet, and we expect it to result in Oceana Gold becoming a 100% unhedged gold producer in the near future."
