Goldgroup replaces Trafigura as equity backstop for Luca Mining Corp. acquisition
What happened
Luca Mining Corp. announced a binding commitment with Goldgroup Mining Inc. Goldgroup will participate in a Brokered Offering for US$75 million, which represents a 19.9% ownership interest in Luca Mining Corp. This commitment replaces the $75 million equity backstop previously provided by Trafigura. The net proceeds from the offering will fund a portion of the cash consideration for the acquisition of the Cozamin Mine.
From mining.com
Why it matters
The change in financing structure affects the acquisition of the Cozamin Mine. The US$75 million raised through the Brokered Offering will be used to fund the cash consideration for the Transaction.
From mining.com
Who's involved
- TrafiguraPreviously provided the $75 million equity backstop for the acquisition.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TrafiguraSpeculative
Trafigura might see changes in its business segment related to financing commitments for acquisitions.
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The entities involved
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Trafigura
Multinational commodities company domiciled in Singapore