Wednesday, July 21, 2010

Andean (AND.to) (AND.ax): Seize the day (and the cash)


Well believe it or not but this humble scribe was looking at the action in Andean Resources (AND.to) (AND.ax) today and thinking, "Funny....kinda non-reaction to the excellent drill news first on Monday...then big bounce Tuesday on volume and brokerage pumpation....now an early doors sell-off......I wonder if they're about to run a financing?". And waddya know, Joe, right after the bell we get to find out about a very hefty CAD$234.5m bought deal, led up by BMO and RBC with all their pals in tow. Here are a few details, so you don't have to click thru:

  • TYPE OF ISSUE: Bought Deal
  • LEAD: BMO Capital Markets (24.0%), RBC Capital Markets (24.0%)
  • OTHER UNDERWRITERS: CIBC (20.0%), Paradigm Capital Inc. (8.0%), UBS Securities Canada Inc. (8.0%), Dundee Securities Corporation (4.0%), TD Securities Inc. (4.0%), Credit Suisse Securities (Canada), Inc. (2.0%), Euroz Limited (2.0%), Haywood Securities Inc. (2.0%), Patersons Securities Limited (2.0%)
  • Size: 70,000,000 common shares C$234,500,000
  • Price: $3.35 per Share
  • Sales Commission: $0.08 per Share
  • Settlement: August 11, 2010
  • Use of Proceeds: The net proceeds will be used to advance the exploration and development of the Cerro Negro project in Argentina and for general working capital purposes.

Then there's a bunch of other details, if you care enough. This is a big bot deal going on in the supposed summer doldrum period, folks, and adds to the $76m AND.to reported at bank in its last balance sheet. Meanwhile, the Houses get to suck up the 70m X 8c/share commish, which works out as.....errr.....a very lot.