Canadian Gold Miners Tap Market for $789.8 Million

The Financial Post reported that since Tuesday night six Canadian gold miners have announced bought-deal offerings. Altogether, the companies have tapped the market for $789.8 million.

The lucky companies are: Romarco Minerals Inc. (TSX:R), Detour Gold Corp. (TSX:DGC), Osisko Gold Royalties Ltd. (TSX:OR), Primero Mining Corp. (TSX:P,NYSE:PPP), Asanko Gold Inc. (TSX:AKG,NYSEMKT:AKG) and Richmont Mines Corp. (TSX:RIC,NYSEMKT:RIC).

As quoted in the market news:

The flood of financings coincides with a significant jump in the gold price that has reignited investor enthusiasm for the sector. Bullion is up almost 10% this month and topped US$1,300 an ounce on Wednesday for the first time since August.

Gold has been out of favour with investors for most of the past two years, so the opportunities for most miners to raise capital have been few and far between. Not surprisingly, they are keen to push these deals through quickly while sentiment remains positive and gold equities are performing very well.

‘We see it over and over again. These windows open so quickly and might be so short,’ said Jay Kellerman, managing partner at Stikeman Elliott LLP. ‘Who would have imagined this [financing wave] a week ago?’

Click here to read the full Financial Post report.