Orion Mine Finance to dispose $285M Capstone Copper shares

Orion Mine Finance to dispose $285M Capstone Copper shares

Capstone Copper Corp. (TSX: CS) and Orion Mine Finance have entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and Scotia Capital Inc. under which the underwriters have agreed to purchase, on a bought deal basis from Orion, 50,000,000 common shares of Capstone at a price of $5.70 for gross proceeds to Orion of approximately CDN $285,000,000.

Orion has granted the underwriters an option, exercisable in whole or in part at any time up to 30 days after the closing of the secondary offering, to purchase up to an additional 7,500,000 common shares at the offering price, which, if exercised in full, would increase the gross proceeds of to Orion to approximately C$327,750,000.

Orion Mine Finance, through Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (Orion Funds), currently holds an aggregate of 222,336,179 common shares, representing approximately 32.03% of Capstone’s issued and outstanding common shares.

Following the closing of the secondary offering, and assuming that the over-allotment option is exercised in full, Orion will, in the aggregate, beneficially own 164,836,179 common shares, representing 23.75% of the outstanding common shares.

Vancouver based Capstone Copper Corp. is an Americas-focused copper mining company. It owns and operates the Pinto Valley copper mine located in Arizona, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, Capstone Copper owns the fully permitted Santo Domingo copper-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.

On March 23, 2022, Capstone Mining Corp. completed combination transaction (RTO) with Mantos Copper (Bermuda) Limited. Mantos was continued from Bermuda into British Columbia, acquired all of the issued and outstanding common shares of Capstone Mining Corp. and changed its name to Capstone Copper Corp.

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