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Lydian International plans subscription offering

Last updated: 06:37 07 Dec 2015 EST, First published: 01:37 07 Dec 2015 EST

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The net proceeds of the offering will be held in escrow

Lydian International (TSE:LYD) has filed a preliminary short form prospectus with the stock market authorities pertaining to a fund-raising.

The net proceeds of a marketed offering of subscription receipts will be held in escrow and, upon the satisfaction of the escrow release conditions, holders of the subscription receipts will be entitled to receive, without payment of additional consideration or taking of further action, one ordinary share of Lydian for each subscription receipt held.

The offering is expected to close during the week of 28 December, 2015.

The company, which last week reached a major milestone in the form of a US$325mln financing package with two investment funds to construct its Amulsar mine in Armenia, plans to use the net proceeds of the subscription receipts offering to finance a portion of the engineering, design and construction, other development costs of the Amulsar project, and to provide working capital requirements.

A proportion of the money raised will cover fees and expenses related to the financing transactions with Orion Mine Finance and Resource Capital Funds announced by the company on 1 December.

Lydian expects to grant the underwriters an option to purchase additional subscription receipts for gross proceeds of up to 15% of the offering.

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on 15/8/16