Capstone Copper and Orion close C$431 million bought deal offering

On February 8, 2024, Capstone Copper Corp. (“Capstone”) and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, “Orion”) jointly announced the closing of the previously announced bought deal offering of common shares of Capstone by a syndicate of underwriters co-led by RBC Capital Markets, National Bank Financial Inc. and Scotiabank, as joint bookrunners, and including BMO Capital Markets, Canaccord Genuity Corp., and CIBC World Markets Inc.

Pursuant to the offering, the syndicate of underwriters purchased, on a bought deal basis from Capstone and Orion, a total of 68,448,000 common shares at a price of C$6.30 per share, which included the exercise in full of the underwriters’ over-allotment option of 8,928,000 common shares from Capstone, for aggregate gross proceeds under the offering of C$431,222,400.

Of the common shares issued, 56,548,000 shares were issued by Capstone for gross proceeds to Capstone of C$356,252,400 and 11,900,000 were sold by Orion for gross proceeds to Orion of C$74,970,000.

Capstone intends to use the net proceeds it received as follows: (i) to advance near term growth initiatives in Chile, notably the Mantoverde Optimized Project and to fund detailed engineering for the Santo Domingo Project; (ii) to advance expansionary exploration programs; and (iii) for general corporate and working capital purposes. In addition, it also owns the fully permitted Santo Domingo copper-iron-gold project, located approximately 30 km northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.

Further information can be found on Business Wire’s website.

Capstone Copper is an Americas-focused copper mining company headquartered in Vancouver, Canada. It owns and operates the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile.

Orion is one of the world's leading mining-focused private equity businesses.