On May 18, 2017, Continental Gold Inc. completed its previously announced private placements with Newmont Mining Corporation and RK Mine Finance Master Fund I Limited (“Red Kite”).
Newmont purchased 37.38 million common shares of Continental at a price of C$4.00 per share for a total investment of US$109 million. Concurrent with Newmont’s investment in Continental, Red Kite purchased 8.59 million common shares of Continental at a price of C$4.00 per share for a total investment of US$25 million, as contemplated in Continental’s secured project credit facility. After giving effect to the private equity placements, Newmont and Red Kite will own approximately 19.9% and 4.6%, respectively, of the issued and outstanding common shares of Continental on a non-diluted basis.
Cassels Brock acted for Continental with a deal team that included Lindsay Clements, Jay Goldman and Jackson Phillips (Securities and Mining).