By: Creamer media

The Toronto-based company said Tuesday it entered into an agreement with Canaccord Genuity and National Bank Financial, acting as co-leads on a syndicate of underwriters, to sell 15-million common shares at C$5.35 apiece. Gross proceeds from the offering will total about C$80-million.

Simultaneously, a significant shareholder holding more than 10% of Allied's stock will sell 15-million shares at the same price in a prospectus-exempt block trade. That sale, also worth about C$80-million, is expected to boost public float and improve trading activity in Allied’s stock.

"The company expects the concurrent block trade to enhance market liquidity for the company's common shares, and the offering will provide further support of that goal. Enhancements of market liquidity is one of the stated objectives of the company, particularly in contemplation of the intended listing of the common shares on the New York Stock Exchange. The listing is expected to provide the opportunity for broader index inclusion," said Allied.

The miner has also granted the underwriters an over-allotment option to purchase up to 2.25-million additional shares, which could add a further C$12-million in gross proceeds if exercised in full.

Proceeds from the offering will go toward advancing optimisation and growth initiatives across the portfolio, including studies to improve recoveries at the Sadiola mine in Mali, extending mine life in Côte d’Ivoire, and additional exploration.

The offering is set to close by April 22 and remains subject to customary regulatory and stock exchange approvals.