TORONTO (miningweekly.com) – Toronto-based Lundin Mining has agreed to sell 80-million shares to a syndicate of underwriters, for a total of C$164-million, which the company will use for working capital and “general corporate purposes”.

The syndicate, led by GMP Securities, will buy the shares on a bought deal basis, at C$2,05 apiece, for sale to the public.

The pricing of the offering is a discount of about 5,5% to Lundin's closing price in Toronto on Thursday, of C$2,17 a share.

The underwriters will also have the option to buy another 12-million shares, which, if fully exercised, would increase the proceeds of the financing to around C$188,6-million, Lundin said.

The offering is scheduled to close on or about April 27.

In February, Lundin said that it was in negotiations with its lenders to amend the terms of a $575-million revolving line of credit facility, after it was not in compliance with the agreement at year-end.

The firm has been granted a waiver by its banking syndicate up to June 5.

Lundin shares fell 3,7% on Friday morning, to C$2,09 a share by 10:25 in Toronto.