DJ Silver Wheaton To Sell 11.7M Units At C$6.40 Each >SLW
Dow Jones Real-Time News for InvestorsSM
08:08 a.m. 12/06/2005
VANCOUVER (Dow Jones)--Silver Wheaton Corp. (SLW) has entered into an agreement for the bought-deal sale of 11,725,000 units at C$6.40 each, for gross proceeds of C$75 million.
In a press release, the company said the underwriting group is led by GMP Securities L.P. The underwriters will have the option to purchase up to an additional 2,350,000 units at the same issue price until closing.
Each unit will consist of one common share and one-half share-purchase warrant, with each whole warrant entitling the purchase of one share at C$10.00 for five years.
Proceeds will be used for general corporate purposes. According to the TSX Web site, the company had 167.2 million shares outstanding as of Monday.
The offering is scheduled to close on or about Dec. 22 and is subject to certain conditions, including the receipt of all regulatory approvals.
Bought more SLWWF's this morning with the dip in the price.
Yes, SLW is positioned to take over the Silver parts of the recent gold deals---more exposure to silver, more leverage, more profits in the future for us!
re CDE: yep I couldn't agree more.
When I first entered the pms oh about 5-6 months ago I wanted to get into a decent silver equity and CDE had nice volume and it also had a history with some pretty decent historical prices. At the time it looked like CDE and SLW were running neck and neck (before SLW broke $4). I bless my lucky stars, going with at the time what looked to me like the conservative play, the co that had actual earnings (SLW).
Furthermore, if you look under the hood and kick CDE's tires, you see massive dilution, poor management, and just an all around inefficient setup. Will they be profitable at POS $10? it's debatable
I was holding back from saying that, but I certainly was thinking it.
I thought perhaps slwtothemoon was being sarcastic with the CDE comment. It would be poetic justice after the goldcorp takeover attempt, to be bought out by the unit they so heavily criticized.
It would be the equivalent of your son defeating your nemesis.
It's an interesting display of optimism that the deal will close. The actions by the three parties ABX/PDG/GG have erred on the side of it not completing, but that's the way unsolicited takeovers go. Also explains the phrasing 'for general corporate financing' so as not to commit the funds or tip the company's hand in any particular directon. A BCM deal would probably be paraded by both parties publicly.
I found the news on kitco's website, where it was quickly drowned to the more news page by ten other stories. Yahoo has yet to run the link to the ticker symbol.
Also, BCM has news out today, with the listing to the Venture 50 list.
I was about to say yesterday, that SLW, except for BearCreek, had been pretty quiet thus far this year, while expectations were for more activity. Looks like things will start to get in gear. Nice that the unit price is nearly yesterday's close, and the warrant up at $10.
So the question is now, what to do with this new financing? As of last quarter's report, the company had around 27 Million US in cash (31M Cdn). Add the bought deal financing for 75M Cdn and we're over 100M Cdn.
Can SLW find another Zinkgruven?
Does SLW up the stake in Bear Creek?
Fun fun fun!