Cabral Gold Inc (TSX-V:CBR) said it has closed its previously announced, non-brokered private placement, which was oversubscribed by $790,000, raising gross proceeds of $2.79 million by issuing 27.9 million company units at a price of $0.10 per unit.
The junior resource firm said it intends to use the net proceeds from the offering for payment of outstanding debts, possibly including amounts due to management of the company, general working capital purposes, and, if the proceeds of the placement are sufficient, exploration and development activities.
Each unit consists of one company common share plus one common share purchase warrant, with each warrant being exercisable for two years following the first closing of the private placement while entitling the holder to purchase one Cabral Gold common share at an exercise price of $0.20.
READ: Cabral Gold to raise up to C$2M in private placement financing
Cabral noted it incurred finder's fees totaling $12,000 in connection with the closing.
It added that all securities issued in connection with the private placement are subject to a statutory hold period of four months plus a day from the date of issuance.
As well, the company reported that approval was obtained from the TSX Venture Exchange to reduce the exercise price of the 6.2 million share purchase warrants issued in connection with the November 25, 2022, private placement from $0.30 to $0.205 through November 25, 2023, and from $0.40 to $0.30 from November 26, 2023, through November 24, 2024.
All other terms of the warrants remain unchanged and no changes to terms of the 1.5 million finder warrants that were issued in connection with the November 2022 non-brokered private placement are being contemplated, Cabral said.
Cabral Gold is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil.
The company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil.
Contact Sean at sean@proactiveinvestors.com