Cline Mining closes $86m financing

Toronto-based Cline Mining Corp (TSE: CMX), a junior miner and exploration company, said on Tuesday that it has closed its previously announced $86 million offering.
Cline mining sold 31.3 million shares at a price of $2.75 per common share, receiving $86.3 million in gross proceeds, including an over-allotment option exercised in full.
The proceeds will be used to complete the development of its 315 million tonne New Elk coal mine in south Colorado, which includes reinstalling the steel rail-spur, as well as for working capital purposes.
The company announced on May 17 that it had struck a financing agreement with a syndicate of underwriters led by TD Securities.
The initial offering, without the over-allotment option, was for 27.3 million shares, at a price of $2.75 per share, to raise $75 million.
The option, exercisable for a period of 30 days following the deal's closing, is for the purchase of an additional 4 million common shares, which increases gross proceeds to $86.3 million.
Cline Mining is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., as well as on iron ore in Madagascar, and the Cline Lake Gold Mine property in northern Ontario, Canada.