Enviro Probe Thwarts Equity Raise For Belo's Brazil Gold Mine

Law360, New York (September 19, 2012, 5:36 PM EDT) -- Canada's Belo Sun Mining Corp. abruptly canceled plans Tuesday to sell $50 million in new shares after Brazilian officials opened what Belo said was a routine investigation into the environmental impact of its Volta Grande gold mine in that country.

The company had planned to sell the stock to BMO Capital Markets in what is known as a bought deal, a more controlled equity-raising option that reduces some financing risk for issuers.

But on Monday, Brazilian officials asked for additional information about Volta’s environmental impact, particularly...
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