Oceana Gold, which operates gold mines at Macraes and Reefton, easily raised $C115 million ($NZ151.5 million) through a capital raising of warrants destined to be traded through the Toronto Stock Exchange.
Craigs Investment Partners broker Peter McIntyre said the capital raising had come at a good time for the company with gold reaching a high yesterday of $US1340 ($NZ1790) an ounce.
"The stars are in alignment for Oceana Gold. It is very positive how quickly they did the capital raising," he said.
Underwriters had confirmed orders for 33 million special warrants to acquire common shares and Chess Depository Interests in the company, Oceana Gold said in a statement.
The offering was being privately placed with institutional investors in Australia, Canada and internationally at an offering price of $C3.50, representing an 8.85% discount to the last close on the Toronto Stock Exchange of $C3.84 and an 8.29% discount to last close on the Australian Securities Exchange of $A3.86 ($NZ5).
Oceana Gold said it intended to use the net proceeds from the offering to fund a portion of the capital spending needs, estimated at $US140 million, for the development of the Didipio gold and copper project in the Philippines.
Some would also be used for future capital and exploration spending associated with extending mine life in this country, and some would be for general working capital requirements.
The company was considering options for the rest of the Didipio capital expenditure.
Mr McIntyre said there were other reasons to be investing in gold.
They included that global production was slowing, growth in Asia where gold was used as gifts and central governments buying gold.
Oceana Gold had also indicated that the mine life of Macraes could be extended.
"We suspect mine life there is now 17 years and will go out further. That is very good for the Otago economy," he said.
