Cadillac Mines, chaired by Canadian Mining Hall of Famer Pierre Lassonde, aims to raise up to $363 million (US$258 million) in an initial public offering (IPO) that counts Agnico Eagle Mines (TSX, NYSE: AEM) as a backer and could help resurrect the past-producing Kerr-Addison gold mine in Ontario.
The Toronto-based explorer, formerly known as Gold Candle, expects to raise about $190 million in gross proceeds, while existing shareholders seek to sell about $173 million of stock, according to a preliminary prospectus filed Monday. The shares are expected to trade on the TSX under the symbol CADY.
Cadillac owns mineral claims in Quebec and Ontario. Kerr-Addison on the Abitibi gold belt in northeastern Ontario, about 40 km east of Kirkland Lake, produced more than 11 million oz. of gold from 35.5 million tonnes grading 9.1 grams gold per tonne from 1938 to 1996 as one of Canada’s largest and highest-grade mines.
IPO interest
Cadillac’s proposed listing adds to a strengthening pipeline of Canadian mining IPOs as investor appetite for precious metals companies improves. Mining companies are tapping Canada’s improving equity markets. Other issuers preparing to go public include BG Gold Capital II and Amapa Minerals, underscoring renewed access to equity financing for the sector after a prolonged slowdown.
The Cadillac offering comprises 50.2 million shares, including common shares priced at $6.90 and special flow-through shares at $9.52. An over-allotment option for another 7.5 million common shares could increase the total proceeds to about $415 million if exercised in full.
Agnico Eagle agreed to buy 8.7 million shares for about $60 million in a concurrent private placement, expanding its investment in Cadillac. Agnico and Franco-Nevada (TSX, NYSE: FNV), where Lassonde was a co-founder, entered into royalty agreements with the company in 2023.
Bank of Montreal, National Bank of Canada and Stifel Financial are leading the offering.
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