3 Dec 2019capital raising announcement● NeutralMajor
SilverCrest agreed with underwriters led by National Bank Financial, Desjardins and Scotiabank to sell 11,000,000 new common shares at C$7.28 each, for gross proceeds of C$80,080,000 (C$92,092,000 if the underwriters' 15% over-allotment option is fully used). The money is meant for continued exploration and development of the Las Chispas Project and general working capital; for shareholders this means new shares are issued, and SSR Mining has a right to keep its pro rata stake of up to 9.9% (the deadline to use it was extended to 45 days after notice). Closing was expected around December 18, 2019, subject to approvals.
What it means for a shareholder
11.0m new shares at C$7.28 to raise about C$80.1m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held C$1,000 of shares (137 at the issue price), your slice goes from 0.000162% to 0.000143% of the company. To keep it you'd need 18 more shares - about C$131 at the issue price.
Create a free account to see this worked out for your own holding.