Allied Gold Limited is pleased to announce the completion of its previously announced public offering of 432,840,000 ordinary shares (the Offering) through a syndicate of agents led by Thomas Weisel Partners Canada Inc. and including Mirabaud Securities LLP, BMO Nesbitt Burns Inc., and CIBC World Markets Inc.. In connection with the closing of the Offering, the Agents partially exercised their over-allotment option to increase the number of ordinary shares issued under the Offering by 23,859,000 shares (5.5%). As a result, a total of 456,699,000 ordinary shares were issued on closing of the Offering at a price of C$0.335 per share (or, for settlement in the United Kingdom, 19.4p per share) for aggregate gross proceeds of C$152,994,165.
The Offering was placed primarily with purchasers in the United Kingdom, the United States and Canada. Based on the Bank of Canada noon exchange rate on December 17, 2009, this implies gross proceeds from the Offering of approximately £88.5 million or A$161.3 million.
As recently announced by the Company, Allied Gold now owns approximately 96.9% of the issued and outstanding shares of Australian Solomons Gold Limited (ASG) as a result of its take-over bid for all of the shares of ASG, and is proceeding with a compulsory acquisition under Australian law of the balance of the ASG shares.
Allied Gold intends to use the net proceeds from the Offering for the redevelopment of the Gold Ridge Project in the Solomon Islands which it has recently acquired through its acquisition of ASG, the completion of its Simberi Project oxide expansion in Papua New Guinea, and working capital and general corporate purposes.