UPDATE 1-Aura Minerals to raise C$100.1 mln in bought deal

Mon Jun 15, 2009 8:32am EDT
 
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* Proceeds to fund mine acquisitions from Yamana Gold

* Plans 1-for-5 share consolidation

June 15 (Reuters) - Exploration and development company Aura Minerals Inc (ORA.TO) said it would raise C$100.1 million ($89 million) in a bought-deal financing to fund the acquisition of three gold mines in Honduras and Brazil from Yamana Gold Inc (YRI.TO).

Yamana Gold said last week it would sell three of its non-core operating mines -- the San Andres mine in Honduras and the Sao Francisco and Sao Vicente mines in Brazil -- to Aura Minerals in a deal worth about $200 million. [ID:nN10424526]

Aura Minerals said it had entered into an agreement to sell 182 million subscription receipts at C$0.55 each to a syndicate of underwriters led by Canaccord Capital Corp.

The company said it granted the underwriters an option to purchase up to C$25.03 million of additional subscription receipts.

In addition, Aura Minerals said it intends to consolidate all of its common shares on the basis of one new share for five existing shares following the closing of the San Andres acquisition.

Aura Mineral shares, which have gained about 70 percent this month, closed Friday at 64 Canadian cents a share on the Toronto Stock Exchange. ($1=1.129 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Mike Miller)