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UPDATE 1-Linear Gold prices equity sale at discount, shares fall

Thu Nov 5, 2009 2:17pm EST

Stocks

   

* To raise about C$20.3 mln in gross proceeds

Basic Materials

* To sell 9.1 million units at C$2.10

* Units offering priced at a 10 pct discount

Nov 5 (Reuters) - Canadian miner Linear Gold Corp (LRR.TO) said its 9.05 million units equity offering was priced at C$2.10 each, a discount of 10 percent to the stock's Wednesday close.

Linear shares were trading down 16 percent or 37 Canadian cents at C$1.97 on the Toronto Stock Exchange.

The company said a syndicate of underwriters led by Cormark Securities Inc would also buy 520,000 flow-through common shares at C$2.40 a share, in addition to the 9.05 million units. Linear expects gross proceeds of C$20.3 million ($19.11 million).

The company said it would use the proceeds for the exploration, development and construction of its goldfields development project and for general working capital purposes.

($1=1.062 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Pradeep Kurup)

Basic Materials


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