www.scminerals.com
Sacre-Coeur Minerals Ltd. (TSX-V: SCM) is a Canadian Junior Mining company engaged in the acquisition, exploration and production of gold and other metals in South America. The company is currently focused on its gold properties in Guyana, a miner-friendly country with a stable government where the Company holds 100% interest in approximately 978 square kilometers of mineral concessions.
Sacre-Coeur closes critical $2.58m private placement
Sacre-Coeur Minerals (CVE:SCM), which last month announced that steel giant Severstal (LON:SVST)(RT:CHMF) had terminated a takeover bid for the company, said late Tuesday that it has closed a C$2.58 million private placement financing.
The South America-focused mineral explorer issued 4.68 million units at C$0.55 per unit to a group of private and institutional investors, it said.
Each unit consists of one common share of Sacre-Couer and one half of one share purchase warrant, with each whole warrant entitling the holder to purchase an additional common share at C$0.75 until March 15, 2013.
As a result of Severstal cancelling the conditional takeover agreement, which was originally supposed to close in November, Sacre Coeur was forced to undergo a review of all aspects of its operations, as the protracted deal (delayed several times by Severstal) exhausted the company's liquid assets. The Russian steel company cited "failure of due diligence to their satisfaction" as the reason for the cancellation of the $77 million acquisition.
Proceeds from the new placement, a critical source of capital for Sacre Coeur in order to meet its goals for the year, will be used to jumpstart an aggressive exploration campaign on the company's Million Mountain gold property in Guyana. Fifteen thousand metres of drilling are anticipated in the next seven to eight months.
"This additional capital will allow us to continue our budgeted programs in 2011 as we ramp-up alluvial gold production and drilling on the Million Mountain trend," said Sacre-Coeur CEO Gregory Sparks.
