Tahoe Closes IPO for Guatemala Buy

Canadian miner Tahoe Resources, which acquired Goldcorp’s Escobal silver project in Guatemala, has raised CAD348m from an IPO of 58m common shares priced at CAD6 each. The company expected to raise about CAD340m to fund the mine purchase. The company also says it has granted an over-allotment option to the underwriters of the deal to buy up to an additional 5.8m shares at CAD6 each. The option is exercisable for 30 days. GMP Securities and Genuity Capital Markets were co-lead underwriters, with BMO, CIBC, Macquarie, RBC, Dundee Securities and Paradigm Capital as underwriters. On the same day, Tahoe also closed on the acquisition of Escobal from Goldcorp. Goldcorp received an aggregate of 43.7m Tahoe common shares, representing 40% of Tahoe’s issued and outstanding common shares and $253m in cash, valuing the deal at CAD505m. Canaccord Genuity acted as the target’s financial advisor. Tahoe’s stock, trading on the TSX under the symbol THO, closed at CAD6.25 Tuesday.