Each one in plain English, with the numbers worked through for a shareholder.
10 Sept 2009debt financing● NeutralMajor
Jaguar announced plans for a private offering of about US$110 million of senior convertible notes due 2014, with a possible additional US$15 million. Proceeds are intended to repurchase its outstanding 10.5% secured notes, fund exploration and pre-development of an unnamed gold property it is negotiating exclusively to acquire, and for general purposes. Terms were not yet set; the acquisition is subject to due diligence, a definitive agreement and approvals.
2 Mar 2009capital raising announcement● NeutralMajor
Jaguar closed a share offering of 13,915,000 common shares at Cdn$6.20, raising Cdn$86,273,000 gross; this includes 1,815,000 shares from the underwriters' over-allotment option, exercised in full. Led by RBC Capital Markets and Blackmont Capital, proceeds are intended for developing the Caete Project and general purposes. This is a second raise after the Cdn$13.40 offering in February 2008, at a much lower price, so it dilutes existing holders more per dollar raised. The company again states it has no gold hedges.
What it means for a shareholder
13.9m new shares at C$6.20 to raise about C$86.3m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Jaguar reported about 48,000 m of drilling in 2008. Two of four deep holes at Turmalina Ore Body A hit the mineralized structure at roughly 800 m (about 7 g/t in a narrow zone), versus reported resources only to about 500 m. This follows the deep drilling program announced in September 2007. The company plans to update Turmalina's inferred resources, but has no plans for further deep drilling at Turmalina at this time. It also reported new oxide and sulfide intercepts at Ore Bodies B, C and D, a new Fazenda Experimental target, and Paciencia (NW01, Conglomerates) results. In 2009 it intends more underground exploration aimed at expanding Turmalina beyond the current 100,000 oz/yr plan.
Jaguar got TSX approval for a share buyback (its third) of up to the lesser of 3,119,114 shares (5% of the 63,982,281 outstanding) or Cdn$7,000,000, running November 13, 2008 to November 12, 2009. Bought shares will be cancelled. The company says it believes its share price may not fully reflect the business's value. It also states it has no gold hedges in place, consistent with the 2007-2008 plan to eliminate them.
Ahead of an April 9-11 analyst tour, Jaguar reported Q1 2008 progress: about 11,710 m drilled and 1,120 m of underground development. The new Paciencia plant entered commissioning in early April, with under 50,000 oz expected in 2008 and about 100,000 oz/yr at design rates. The Caete feasibility study is due for completion by end of April, and Turmalina is expected to rise from 1,350 to 1,800 tonnes per day in 2009 (107,000 oz/yr) using Satinoco ore. The company reiterates its plan to reach about 700,000 oz by 2014.
27 Feb 2008capital raising announcement● NeutralMajor
Jaguar closed a public share offering of 8,250,000 common shares at Cdn$13.40, raising Cdn$110,550,000 gross, led by RBC Capital Markets. Underwriters have an option for up to 1,237,500 more shares (total Cdn$127,132,500 if fully used). Proceeds are intended mainly for exploration and expansion capex at its three largest Brazilian projects, to eliminate forward sales contracts and project financing term debt (following the September 2007 decision to end the hedge), and general purposes. This adds shares, diluting existing holders.
Jaguar filed a revised technical report on its Satinoco target, next to the Turmalina mine, bought from AngloGold Ashanti in September 2004. It now states measured and indicated resources of about 208,560 oz of gold (1,741,000 tonnes at 3.72 g/t) and inferred resources of about 64,750 oz, updating an October 22, 2007 report with results from a further 2007 drilling phase. The report recommends a feasibility study to expand Turmalina based on Satinoco, which follows the expansion plan announced in September 2007.
Jaguar's CEO presented at the Denver Gold Forum. The company announced a deep drilling program (holes up to 1,000 metres at Turmalina, Roca Grande and Pilar), a push to expand Turmalina to over 100,000 oz of gold by 2009 (about $8 million capital, completion expected Q3 2008), and a delay of the Caete Project: feasibility study now Q1 2008 and commissioning Q2 2009, because of delayed power supply. It also said it will terminate its gold hedge program, which it had put in place to obtain the Turmalina project financing, so shareholders get 100% of gold price upside.
