Terrane Raises C$100 Million From Goldcorp, Investors (Update1) -Shanghai Metals Market

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Terrane Raises C$100 Million From Goldcorp, Investors (Update1)

Industry News 09:02:51AM Mar 26, 2010 Source:SMM

March 25 (Bloomberg) -- Terrane Metals Corp., developing the Mt. Milligan mine in British Columbia, said it's raising C$100 million ($97.6 million) to fund the project by selling shares and warrants to Goldcorp Inc. and a group of underwriters.

Terrane will sell 90.9 million units, each consisting of one common share and a half common share purchase warrant, for C$1.10 each, the Vancouver-based company said in a statement. Each whole warrant can be converted into a common share for C$1.50 one year from the transaction's completion, Terrane said.

Underwriters led by National Bank Financial Inc. agreed to buy 63.6 million units and Goldcorp will buy 27.3 million, Terrane said in the statement.

Terrane plans to start construction at the gold and copper mine in July, and will need to complete financing by the end of 2010, Chief Executive Officer Robert Pease said Jan. 12 in an interview. The company wants to sell part of Mt. Milligan to raise more capital, and will give the buyer rights to metal produced there. Goldcorp, the second-largest bullion producer by market value after Barrick Gold Corp., allowed an option to partner on Mt. Milligan to expire, Terrane said in a Jan. 8 statement.

The Mt. Milligan project will produce 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of a 22-year mine life, Pease said in a Jan. 12 presentation at the Emerging Miners CEO Conference in New York.

Terrane has held talks on financing for the project in "the last few years" with Sumitomo Corp. officials in the Japanese company's Vancouver office and in meetings "in recent months" in the city with Sumitomo Metal Mining Co., Pease said in a Feb. 9 telephone interview.

Terrane rose 1 cent to C$1.22 at 3:58 p.m. in Toronto Stock Exchange trading. The shares have declined 9 percent this year.
 

Terrane Raises C$100 Million From Goldcorp, Investors (Update1)

Industry News 09:02:51AM Mar 26, 2010 Source:SMM

March 25 (Bloomberg) -- Terrane Metals Corp., developing the Mt. Milligan mine in British Columbia, said it's raising C$100 million ($97.6 million) to fund the project by selling shares and warrants to Goldcorp Inc. and a group of underwriters.

Terrane will sell 90.9 million units, each consisting of one common share and a half common share purchase warrant, for C$1.10 each, the Vancouver-based company said in a statement. Each whole warrant can be converted into a common share for C$1.50 one year from the transaction's completion, Terrane said.

Underwriters led by National Bank Financial Inc. agreed to buy 63.6 million units and Goldcorp will buy 27.3 million, Terrane said in the statement.

Terrane plans to start construction at the gold and copper mine in July, and will need to complete financing by the end of 2010, Chief Executive Officer Robert Pease said Jan. 12 in an interview. The company wants to sell part of Mt. Milligan to raise more capital, and will give the buyer rights to metal produced there. Goldcorp, the second-largest bullion producer by market value after Barrick Gold Corp., allowed an option to partner on Mt. Milligan to expire, Terrane said in a Jan. 8 statement.

The Mt. Milligan project will produce 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of a 22-year mine life, Pease said in a Jan. 12 presentation at the Emerging Miners CEO Conference in New York.

Terrane has held talks on financing for the project in "the last few years" with Sumitomo Corp. officials in the Japanese company's Vancouver office and in meetings "in recent months" in the city with Sumitomo Metal Mining Co., Pease said in a Feb. 9 telephone interview.

Terrane rose 1 cent to C$1.22 at 3:58 p.m. in Toronto Stock Exchange trading. The shares have declined 9 percent this year.