Alio Gold Announces C$50 Million Bought Deal Offering
Alio Gold Inc. (TSX, NYSE MKT: ALO, formerly known as Timmins Gold) has entered into an agreement in which underwriters have agreed to purchase on a bought deal basis 8 million “units” of the company at a price of C$6.25 each, representing gross proceeds of C$50 million. Each “unit” consists of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price of C$8 for 12 months after the closing date. Closing is expected around July 20 and is subject to regulatory approval. The underwriters have the option of purchasing additional shares. “The net proceeds of the offering will be used by the company to advance its Ana Paula project and for general corporate purposes,” Alio says.