Boston, MA 04/25/2014 (wallstreetpr) – Allied Nevada Gold Corp. (NYSEMKT: ANV) has entered into an agreement with West Kirkland Mining Inc whereby it is divesting 75% of its stake in its non-core Three Hills and Hasbrouck properties. This deal has been made with a total consideration of $20 million. The three Hills property comprises 100 unpatented mining claims and 6 patented mining claims whereas the Hasbrouck property comprises 583 unpatented mining claims and 28 patented mining claims. These properties are situated in Esmeralda County and Nye County in Nevada.
Legal imbroglio
Morgan & Morgan has filed class action in a District Court on behalf of all people who had bought or otherwise acquired common stock of Allied Nevada Gold Corp. (NYSEMKT: ANV) anytime between Jan. 18, 2013 and Aug. 5, 2013. The complaint has alleged that the company issued materially incorrect and misleading statements to these people regarding Allied Nevada’s financial prospects and operations.
Newman Ferrara LLP has filed a class action lawsuit in the Unites States District Court for the District of Nevada on behalf of all buyers of the common stock of Allied Nevada Gold Corp. The complaint has alleged that the company issued materially incorrect and misleading statements to these people during a Class period regarding Allied Nevada Gold Corp. (NYSEMKT: ANV)’s financial prospects and operations. Incorrect information regarding escalating costs involved in remediation of Lewis leach, serious operational flaws and problems at the Lewis leach pad and development of Hycroft mine had been provided to these people that has landed them today in trouble.
Raising capital
Allied Nevada Gold Corp. (NYSEMKT: ANV) has cracked bought deal equity with a syndicate of underwriters, headed by Dundee Securities Ltd. With regards to the closing, 14,000,000 common stock shares of the Company were issued at a price of $10.75 per share. This has paved the way for collection of aggregate gross proceeds of $150.50 million. Underwriters have the option of purchasing up to an incremental 2.10 million shares of common stock at a price of $10.75 per share any time up to 30 days. They may exercise this option in whole or in part. If they choose to exercise the option in whole, it would generate proceeds of $173.075 million. The Company plans to divert the net proceeds of this offering to fund general corporate purposes and support capital expenses at its Hycroft Mine.
