Southern Arc to raise $27m through offering

Canadian-listed Indonesia-focused mineral exploration firm Southern Arc Minerals will raise C$27 million gross through offering of 16,875,000 common shares of the company.

The company said on Tuesday it has appointed Mackie Research Capital Corporation (MRCC) and the syndicate as lead underwriter and sole bookrunner in a syndicate of underwriters.

The underwriters will also have the option to purchase from the Company, up to an additional 15% in Common Shares at the Offering Price. If the Option is exercised in full, the gross proceeds to the company would be $31,050,000.

The Offering is scheduled to close on or about February 23, 2011.

The proceeds received will be used by the Company for the ongoing exploration and development of its mineral properties and for general corporate purposes.

Southern Arc Minerals is an Indonesia-based Canadian mineral exploration company with a portfolio of four active, advanced projects involving epithermal gold and high-potential gold-copper porphyry prospects on Java, Lombok and Sumbawa islands. (alex)