East Otago-based Oceana Gold has completed its $C86.3 million ($NZ119 million) capital-raising programme which will allow it to buy out its contracted forward hedge book and sell all its gold on the daily international spot market.
In February, 20-year-old Oceana filed a short form prospectus with the mining-friendly Toronto Stock Exchange, its principal listing, offering ordinary shares, and conducted a placement of ASX listed chess depository interests.
The latter offer gained shareholder approval at a special meeting on March 25, a week after the company poured its three-millionth ounce of gold at Macraes.
Oceana chief executive Paul Bibby said the equity raising was "overwhelmingly supported" by existing shareholders and also brought in new shareholders to further strengthen Oceana's shareholder base.
"This $C86 million equity raising is an important step in our strategy to de-risk the capital structure of the company and to turn Oceana Gold into a 100% unhedged gold producer," he said in a statement to the market.
Several major gold producer companies last year moved to buy out their hedge books, in part because investors were frustrated the companies could not make the most of record daily spot gold prices.
Since trading about $1 last September, Oceana shares have enjoyed a stellar run, rising above $3.50 earlier this month to settle and trade about $3.25 yesterday.
This is the second time in seven months Oceana has offered chess depository interests.
Trading as ordinary shares, they are held for investors in a nominee company. Last July, it raised $A24.2 million ($NZ30 million) in a funding boost designed to expand its exploration programme, which could add three years to the life of its Macraes and Reefton mines.
