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May 4, 2016
Wesdome Gold Mines Completes $17 Million Bought Deal Financing
On April 29, 2016, Wesdome Gold Mines Ltd. (TSX:WDO) announced that it completed a public offering of 10,465,000 common shares at a price of C$1.65 per share for gross proceeds of C$17,267,250, including the exercise in full of the over-allotment option by the underwriters. The shares were distributed pursuant to a bought deal by a syndicate of underwriters co-led by National Bank Financial Inc. and Mackie Research Capital Corporation and including Dundee Securities Ltd., Clarus Securities Inc. and M Partners Inc. Wesdome intends to use the net proceeds for mill expansion and associated infrastructure at Wesdome’s Eagle River Complex, and for working capital and general corporate purposes.
Wesdome is in its 28th year of continuous gold mining operations in Canada. The company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from its Eagle River and Mishi gold mines. Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Management of Wesdome also believes there is significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are being explored and evaluated to be developed in the appropriate gold price environment.
Aird & Berlis LLP advised Wesdome with a team that included Eldon Bennett (Mining), Geoff Clarke, Sherri Altshuler, Melanie Cole, Jonathan Tong and Daniel Everall (Mining & Corporate Finance) and Barbara Worndl (Tax).