Centamin Egypt (ASX:CNT/TSX:CEE/AIM:CEY) has announced that it has entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc. and Cormark Securities Inc. under which the Underwriters have agreed to buy 92,308,000 ordinary shares from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share.
Gross proceeds raised from the offering to Centamin will be C$60,000,200 (C$69,000,230 if the over-allotment option is exercised). The offering is subject to the approval of the TSX.
Centamin Egypt Limited intends to use the net proceeds of the offering for the continued development of the Sukari Gold Project, underground development, other exploration and general corporate and working capital purposes. The requirement for additional development funds is primarily a result of recent movements in the US dollar to Canadian dollar exchange rate and construction delays at the Sukari Gold Project (as previously reported). The Company remains debt free, without gold hedging and on track for gold production in Q2 2009.
Centamin Egypt was trading up 3%, to 88 Australian cents.