Cadillac Mines Prices C$415M IPO with Agnico Eagle as Anchor

Cadillac Mines Corp. priced its initial public offering at C$6.90 per common share and C$9.52 per special flow-through share, targeting gross proceeds of roughly C$415 million if underwriters exercise the full over-allotment. The syndicate led by BMO Capital Markets, National Bank of Canada Capital Markets and Stifel Canada began marketing the deal Thursday after the company filed an amended preliminary prospectus.

The structure splits into three pieces. A treasury component of 25.1 million shares should bring Cadillac Mines close to C$190 million. Selling shareholders will offload another 25.1 million shares, yielding roughly C$173 million for those holders. The underwriters also have a 30-day option to buy an extra 7.5 million common shares at C$6.90, which would push the total to C$415 million.

The company's biggest strategic backer is Agnico Eagle Mines Ltd., which agreed to buy 8.7 million common shares in a concurrent private placement worth C$60 million. Agnico pays no fees on that piece; the underwriters sit out the private placement entirely. The deal cements Agnico Eagle as a substantial shareholder in Cadillac Mines before the stock even starts trading.

Cadillac Mines, renamed from Gold Candle Ltd. earlier this year, holds a district-scale land package along the Cadillac-Larder Lake Break in Ontario and Quebec. That belt has produced more than 90 million ounces of gold historically, and the company's portfolio includes the past-producing Kerr-Addison mine and the Geminid nickel deposit. Proceeds will fund exploration and development across those assets, the company said in the prospectus.

The syndicate includes Scotiabank, Barclays Capital Canada, CIBC Capital Markets, Desjardins Securities and Ventum Financial as co-managers. Barclays involvement is notable for a specialty mining deal of this size, though its role is limited to the underwriting group. Goodmans LLP is advising Cadillac Mines on Canadian law, while Dorsey & Whitney handles U.S. matters.

Toronto Stock Exchange has conditionally approved the shares for listing under the symbol CADY. The company has until Oct. 15 to meet minimum public-distribution requirements before trading can start. The prospectus remains in preliminary form; final regulatory clearance is still pending.

The securities are not registered in the U.S. and cannot be offered or sold there unless exempt from the Securities Act of 1933. The company said the roadshow is underway, with no closing date set yet.