Metalla Royalty & Streaming Ltd (CVE:MTA) (NYSEAMERICAN:MTA) and Coeur Mining Inc (NYSE:CDE) have entered into a bid letter with a syndicate of underwriters who will buy on a “bought deal” basis 2.4 million common shares of Metalla currently held by Coeur.
The shares will be sold at US$5.30 each and Coeur will garner about US$12.72 million in proceeds.
In a statement Monday, Metalla said it will not receive any proceeds from the secondary offering.
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In addition, Coeur has granted the underwriters an over-allotment option to purchase up to an additional 15% of the number of shares of Metalla sold in the offering for up to 30 days after the closing. If the over-allotment option is exercised in full, the total gross proceeds to Coeur will be US$14,628,000.
Coeur currently owns 5,241,310 shares, representing approximately 14.9% of the issued and outstanding stock of Metalla on a non-diluted basis.
Upon closing of the secondary offering and prior to the exercise of the over-allotment option, Coeur’s ownership of Metalla will be reduced from 14.9% to 6.7% (on a non-diluted basis) after giving effect to the Wharf royalty transaction announced by Metalla.
Coeur has also agreed, subject to certain limited exceptions, not to sell any shares or other securities of Metalla for a period of 120 days from the closing of the offering.
The financing is led by PI Financial Corp, Haywood Securities Inc and Cantor Fitzgerald Canada Corporation.
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