Guatemala Miner Lays IPO Groundwork

Mining start-up Tahoe Resources, which is buying the Escobal silver project in Guatemala from subsidiaries of Canada’s Goldcorp for $505m, is expected to raise around CAD340m through an IPO on the TSX, according to Canaccord Financial CEO Paul Reynolds. Canaccord is handling the IPO with GMP Securities. Funds raised in the float will be used for the Escobal purchase, as well as engineering studies and exploration. Tahoe has said that it plans to finance the Escobal acquisition with a combination of a minimum of $230m in cash and 40% of the fully diluted number of issued Tahoe shares immediately following the closing of the IPO. The funds raised will be used for the cash portion of the acquisition. The Escobal project is Tahoe’s sole asset. Closing of the transaction is anticipated on or about June 8.