On September 19, 2010 the company agreed to sell 3,475,000 shares at $16 each ($55.6 million gross) to several institutional buyers, and completed the sale on September 23, 2010. This is the first raise in this history from investors other than Hochschild and is placed through Jefferies & Company, which was paid a $3,336,000 commission. The company must file to register the shares for resale within 30 days of closing. The filing does not state how the proceeds will be used.
On September 20, 2010 the company announced it had signed agreements for a private placement of its stock and furnished the press release and an investor presentation; the filing text itself gives no terms (these appear in the related September 23 filing). The presentation states El Aguila began commercial production July 1, 2010, the stock is newly listed on NYSE Amex, Hochschild holds about 29% and has invested $65.2 million since December 2008, and special cash dividends of $0.03 per share were declared July 29 and August 31, 2010. It also states targets of 60,000-70,000 ounces of gold from the open pit in the first 12 months and underground La Arista production starting July 1, 2011; these are company targets, not proven reserves.
On May 26, 2010 the company agreed to sell Hochschild 631,579 shares at $9.50 ($6,000,000), again under Hochschild's right of first refusal from the 2008 alliance. Proceeds are for corporate overhead and continued development of the El Aguila mill and mine.
On March 8, 2010 the company agreed to sell Hochschild 600,000 shares at $8.62 ($5,172,000), again under Hochschild's right of first refusal from the 2008 alliance. Proceeds are for corporate overhead and continued development of the El Aguila mill and mine. The press release says Hochschild's holding is now 28.7% (including about 440,500 shares bought on the open market), and that first concentrate production began February 3, 2010 at the El Aguila mill.
23 Dec 2009capital raising announcement▲ GoodMajor
On December 17, 2009 the company agreed to sell Hochschild 1,954,795 shares at $8.185 ($15,999,997.10), again using Hochschild's right of first refusal from the 2008 alliance. $8,000,000 is reserved solely for building the underground ramp and tunnels for the La Arista vein, held in a joint-signature account, and $1,500,000 goes into the existing exploration account to replenish funds spent from it. The press release says this lifts Hochschild's holding to about 27%, and that the earlier $4M account (of which $3.5M remains) will now be used only for exploration.
22 July 2009capital raising announcement▲ GoodMajor
On July 20, 2009 the company closed the second part of the Hochschild sale, selling the remaining 3,750,000 shares at $4.00 for $15,000,000, which brings the total to $20,000,000. This completes the June 30 agreement, and $4,000,000 was put into a restricted account needing both parties' signatures, to be used only for exploration.
6 July 2009capital raising announcement▲ GoodMajor
On June 30, 2009 the company agreed to sell Hochschild 5,000,000 shares at $4.00 ($20,000,000 total), after Hochschild used its right of first refusal on new equity financing under the 2008 alliance. 1,250,000 shares ($5,000,000) closed immediately and the other 3,750,000 were due by July 20, 2009. Mainly for developing the mill and mine at El Aguila, but $4,000,000 of the second closing is reserved for exploration in a joint-signature bank account.
27 Feb 2009capital raising announcement▲ GoodMajor
On February 25, 2009 Hochschild exercised its option from the December 2008 alliance, agreeing to buy 4,330,000 shares at $3.00 for $12,990,000. Under the alliance terms, this entitles Hochschild to nominate one director and keeps its other rights in force.
What it means for a shareholder
4.3m new shares at US$3.00 to raise about US$13.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
11 Dec 2008capital raising announcement▲ GoodMajor
On December 5, 2008 the company sold 1,670,000 shares at $3.00 to Hochschild Mining Holdings (an affiliate of Hochschild Mining plc) for $5,010,000, and signed a strategic alliance agreement. Hochschild also got an 80-day option to buy 4,330,000 more shares at $3.00 ($12,990,000), plus rights to join future financings, a possible board seat, and a right of first refusal on joint ventures. Its ownership is capped at 40% for two years. These rights lapse if it does not exercise the option or falls below 14.5% ownership. The CEO also held an investor conference call on December 11, 2008.
On December 5, 2007 the company sold 5,413,500 shares at $4.00 each in a private placement, raising $21,654,000 gross. It says it will use the money to buy and build a mill at its El Aguila project in Oaxaca, Mexico, and for working capital. Finder's fees of up to 5% in cash and 5% in shares may be paid, and the company must register these shares with the SEC.
This amends the December 2006 private placement report. Net proceeds are restated to $4,928,430, and finder's fees are restated to $257,970 cash plus 257,700 shares (previously $259,320 and 259,320 shares). The 4,322,000 shares at $1.20 and the June 7, 2007 registration deadline are unchanged.
What it means for a shareholder
4.3m new shares at US$1.20 to raise about US$4.9m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
12 Dec 2006capital raising announcement▲ GoodMajor
On December 7, 2006 the company sold 4,322,000 new shares at $1.20 each in a private placement, raising $5,186,400 gross ($4,927,080 after finder's fees). Investors get registration rights: if the resale registration is not effective by June 7, 2007, the company must issue extra shares equal to 10% of each investor's shares.
