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by Stockwatch Business Reporter

The TSX Venture Exchange fell a fraction to 789.64 Thursday. Neil Woodyer and Frank Giustra's halted NEX listing, Leagold Mining Corp. (LMC), formerly called HTI Ventures Corp., plans to buy the Los Filos gold mine in Guerrero state, Mexico, from Ian Telfer's Goldcorp Inc. (G: $19.20). Leagold will pay $279-million (U.S.) and issue $71-million (U.S.) worth of shares to Goldcorp. On Sept. 30, 2016, Leagold had $25.44-million cash. It plans to raise more money through debt and equity offerings. The financing terms are not yet available, but Leagold says the deemed price of shares to be issued to Goldcorp will equal the offering price in the equity financing. On closing of the acquisition, Goldcorp will hold about 30 per cent of Leagold's shares. Goldcorp will also have the right to nominate a representative to Leagold's board.

Currently, there are 135,654,471 Leagold shares issued. If it sets the offering price to its last closing price (63 cents), then it would need to issue 148,120,087 shares to Goldcorp. Since Goldcorp's shareholding is estimated to be about 30 per cent on closing, Leagold's equity financing in this scenario would consist of approximately 209 million shares.

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